Murray is playing in Australia under his protected ranking of world number two, which is used to help players who have suffered long-term injuries.
World number ones Novak Djokovic and Simona Halep were named top seeds today for next week's Australian Open, with 23-time major victor Serena Williams lurking at 16 on the women's side. Murray played at the season-opening Brisbane International last week, where he won his first-round match against James Duckworth but lost in straight sets to Daniil Medvedev in the second, limping between points and admitting he's still dealing with his troublesome right hip.
Defending champion Roger Federer is seeded No. 3 after Rafael Nadal, while women's defending singles champion Caroline Wozniacki, who beat Halep in last year's final at Melbourne Park, is No. 3 behind second-seeded and 2016 champion Angelique Kerber.
Third-seeded Caroline Wozniacki, who won her first Grand Slam title here previous year after a tough final against Halep, is in the same section as Maria Sharapova and has Petra Kvitova at the top of her quarter.
"I can't believe it's been a year already", Dane Wozniacki said at the draw ceremony.
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A supporter of the 31-year-old wrote on Instagram saying how much they enjoyed Murray's practice match with Novak Djokovic on Thursday.
"The first time I came back here and hit on the courts, I thought, 'OK, I'm home, "' the third-seeded Wozniacki said of her return to Melbourne Park. If it would happen defending this title, I would gladly accept it.
"To finally get that (title) here was so special, it's the happy slam".
Serena Williams, who is seeded 16th, faces fellow mother Tatjana Maria of Germany in her first competitive match since her tempestuous US Open final loss to Naomi Osaka.
It will be the first time for Wang to head into a Grand Slam as a seeded player. For me it's just taking it day by day, doing the right things, taking even better care of my body.