The left-armer was advised by the UK Border Agency that he had to return home to rectify paperwork on his visa, just days after arriving in England to begin a five-week stint at the White Rose county. Yorkshire chairman Colin Graves blamed Starc's agent, Andrew Fraser, for the "fiasco".
However Fraser told Sportal: "We have followed the correct procedure and it's just unfortunate it couldn't be worked out at their end. It's ludicrous that it has come to this. Common sense should have prevailed. I don't want to discredit anyone, it's just an honest administrative blunder, but it's embarrassing for British authorities."
In a further twist Fraser revealed Starc may now not even return to Australia, with the 22-year-old reportedly stranded in Kuala Lumpur, while a decision is made on whether he can immediately return to England.
"I am working the phones now trying to sort it out. Hopefully we can turn him around at KL and get him back to England," Fraser added.
It is reported that Starc, who has played four Tests for Australia, had needed to apply for a tier-five working permit but the wrong paperwork was submitted.
Yorkshire chairman Graves had told The Guardian on Tuesday night: "This to me just shows that you get good agents and bad agents, and this agent hasn't done a proper job. We've got everything right, and Cricket Australia will look at it and say he's got what's required, and after that it's down to the agent."
Starc had initially been detained for four hours at Heathrow when he arrived in England at the weekend before being allowed to head north.
He was due to make his debut in Wednesday's LV= County Championship Division Two match at Gloucestershire, and admitted his frustration before boarding the plane, tweeting: "Well that's a first! Being deported from England...surely nothing else can go wrong can it?!?!
"Visa issue. Incorrect communication from Aus. Will be straight back to UK ASAP once sorted. In time for next @Yorkshireccc game. The @Yorkshireccc have been brilliant to me...disappointed I won't get to play tomorrow but good luck to the lads!"