The 23-year-old England Lions squad member was meant to be opening batsman for the senior Ashes team against a Cricket Australia XI on Saturday.
Lions and senior team members were out in a bar in Perth on Thursday evening after having a midnight curfew lifted that day.
No members of the public were involved in the incident and England team security were present, it is understood.
Coach Trevor Bayliss confirmed Duckett poured a drink over a senior England player's head.
Left-hand top-order batsman Duckett has now been suspended by the England and Wales Cricket Board and is facing a disciplinary investigation.
Team-mate Joe Clarke has replaced the Northants player for the game at Richardson Park in Perth where several full Ashes squad cricketers are being rested.
Mr Bayliss said there was a heated row with a senior player, reported as fast bowler Jimmy Anderson by Sky Sports News.
He added: "I think that was the issue.
"It was boys being boys, I suppose, but totally unacceptable. It's trivial, but in the current climate not acceptable.
"Everyone has been warned about how even small things can be blown out of all proportion.
"I'm disappointed. With what we have had ot go through already with these problems, it is not acceptable."
He added he was "fed up" of having to address off-field matters and said there will be "some stern words from above".
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Duckett's suspension is another blow for England cricket, after Jonny Bairstow was accused of "headbutbutting" Australia batsman Cameron Bancroft in a Perth bar at the beginning of the Ashes tour in November.
Players were then given a midnight curfew which was only lifted on Thursday.
Bairstow, 28, on Friday claimed he was "stitched up" by Australia and said his headbutt was simply a greeting and a case of "boys being boys".
In September all-rounder Ben Stokes, 26, was arrested on suspicion of actual bodily harm following a fight outside a Bristol nightclub.
After the Bairstow incident, director of cricket Andrew Strauss denied the England team had a drinking culture.
He warned they must be "smarter" with the situations they place themselves in.
He said: "We need to sharpen up our act.
"The players are adults - intelligent adults - and sometimes they are not using that intelligence in the right way.
"The last thing any of us want is to be in the news for the wrong reasons and I will be reminding the players of their obligations."
England are 2-0 down in the Ashes series and will lose the urn if the Australians win the third Test in Perth, which starts on Thursday.