Kyrgios recently sparked huge controversy in the China tournament over his on-court behavior in his defeat to Mischa Zverev and also getting into verbal exchanges with a supporter and the umpire.
The Australian was initially handed a 16,000 dollar fine but, after further investigation, the ATP have charged him with an extra 25,000 dollars whilst banning the world number 14 for the rest of the year.
He will be suspended from October 17 to January 15 for 'conduct contrary to the integrity of the game' although this period could be reduced if a sports psychologist is seen.
Kyrgios, who triumphed in Japan recently, could return on November 7 if he agrees to undertake the sessions but he will definitely miss the ATP World Tour Finals in London
The 21-year-old from Canberra has spoken of his disappointment at his actions and offered a sincere apology to anyone he offended in Shanghai.
"Following the ATP's decision I would like to take this opportunity to apologise again for the circumstances in Shanghai," Kyrgios said. "I regret that my year is ending this way and that I will not have a chance to continue chasing the ATP Finals. This was an important goal for me.
"I do understand and respect the decision by the ATP and I will use this time off to improve on and off the court. I am truly sorry and look forward to returning in 2017."