The Blues will train at Mt Buller, in Victoria's alpine region, from January 27-31.
Blues football manager Andrew McKay said the club's decision had largely been a financial one.
"With the cap on football department spending we just didn't have the money to spend on a pre-season camp in Arizona," McKay said on Friday.
"We can still see the benefits of altitude training, however there are benefits in training in the heat as well. We feel Mt Buller gives us a bit of each of those components.
"The good thing for us here is that we don't have to travel too far from home and we still have the altitude room at the club."
Gold Coast and St Kilda are among other clubs to have abandoned US-based altitude camps this pre-season, while North Melbourne has scaled back its Utah camp.
AFL altitude-training pioneer Collingwood ditched its longstanding Arizona training camp last pre-season.
Carlton coach Mick Malthouse remains an advocate of altitude training but said on Friday pre-season camps were about bonding as much as training.
"It's a good opportunity to refresh ourselves and (work on) our game structures, on our game plans, on our principles, on our culture and so forth," Malthouse said.
"So it's a matter of getting away and making sure we work together, and coming back and reaping the benefits of that camp."
