"As a precautionary measure, Australian Defence Force (ADF) strike operations into Syria have temporarily ceased", a defence spokeswoman said in a statement.
"ADF force protection is regularly reviewed in response to a range of potential threats".
Australia is part of the coalition that began airstrikes against Islamic State targets in Syria in September 2014.
"We believe that having a channel where we can de-escalate and understand each other's intentions serves a very good goal and we are hopeful that we can continue to use it", Pentagon spokesman Navy Captain Jeff Davis said Tuesday.
Reacting to Russia's warning, the Royal Australian Air Force (RAAF) has suspended flights over Syria.
USA forces shot down an Iranian drone in southern Syria on Tuesday, the second such air-to-air encounter this month as opposing forces converge around a key American training garrison near the border with Jordan and Iraq. Iran is particularly concerned with USA influence inside Syria, despite American insistence that its presence in Syria is focused on defeating ISIS.
The U.S. backs the SDF and American special forces soldiers often accompany SDF troops as advisers and trainers.
The presence of Iranian-backed troops, artillery and tanks and USA -led coalition forces in southern Syria, namely around the At Tanf crossing at the Iraq-Syria border, has slowly turned the area into a flash point.
It also comes as the USA military announced officially that coalition forces had killed the Islamic State's top cleric, Turki al-Binali, in an air strike in Syria last month.
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The U.S. spy satellites have detected new activity at North Korea's underground nuclear test sites, according to reports by CNN . Otto Warmbier, 22, died at a hospital in Cincinnati, Ohio on Monday, a week after being released from North Korea in a coma.
Frants Klintsevich, deputy head of the defense committee in Russia's upper house of parliament, said the defense ministry statement does not mean there will be war with the U.S.in Syria, but rather that Moscow will not accept attacks on its Syrian allies.
Two days earlier, a U.S. Navy F/A-18 warplane shot down a Syrian Air Force Su-22 attacking U.S. -backed forces near Raqqa, the Islamic State's de facto capital.
The drone, which was shot down by a U.S. F-15 fighter jet, was Iranian-made and "assessed to be a threat", according to the CNN.
The drone was promptly shot down by a U.S. F-15E fighter.
Moscow has condemned the USA downing of the Syrian government fighter jet after it dropped bombs nears US partner forces.
"They were threatening our forces on the ground", a United States military official told AFP.
Chris Murphy of CT warned Tuesday that the United States could be edging toward a military conflict with Iran and Russian Federation in Syria.
Last week, another Iranian-made drone flown by pro-regime forces was shot down after it dropped munitions close to USA and partner forces.
Russian Federation said it was cutting the "deconfliction line", a key communication channel between Moscow and Washington used to prevent mixed messages and avoid military collisions between the two powers. Sharif, said all six ballistic missiles it launched on Syria hit their targets, according to "local sources and drone films".
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