A spokesman for Football Federation Australia explained they were told a minute of silence was 'not in keeping with Saudi culture' ahead of the match.
Fans were left outraged at the display ahead of the World Cup qualifier against Australia in Adelaide.
Pictures show the Australian team lined up at the halfway mark, with the Saudi players ignoring the gesture as they get in formation to start the game.
Saudi players on the bench refused to stand for the minute's silence.
A spokesperson from the Football Federation Australia told Daily Mail Australia they had been advised prior to the match that the Saudi team would not be taking part.
'The FFA sought agreement from the Asian Football Confederation and the Saudi national team to hold a minute's silence in memory of those lost in Saturday night's terror bombings in London and in particular the two Australian women,' the spokesperson said.
'Both the AFC and the Saudi team agreed that the minute of silence could be held.
'The FFA was further advised by Saudi team officials that this tradition was not in keeping with Saudi culture and they would move to their side of the field and respect our custom whilst taking their own positions on the field.