The defending champion will head home early after 6-7 7-5 6-2 6-7 4-6 defeat.
Konta will face former world number one Caroline Wozniacki in the third round.
Nick Kyrgios exits Australian Open in the second round after blowing two-set lead over Andreas Seppi.
Rafael Nadal has lost just once in nine meetings against Marcos Baghdatis.
Djokovic has won all the five previous meetings against Istomin without dropping a set.
Angelique Kerber joins them after seeing off fellow German Carina Witthoeft.
Croatian Ivo Karlovic breaks two records in match against Horacio Zeballos
British number three Broady loses close three-set match against Daria Gavrilova.
Murray and Rublev are facing each other for the first time.
Federer could face Tomas Berdych in the third round if both win their respective matches.
Konta came through in straight sets against Kirsten Flipkens.
Stan Wawrinka avoids shock exit against Martin Klizan on day one in Melbourne.
Verdasco beat Rafael Nadal in the first round of the Australian Open in 2016.
Nadal lost in the first round at the 2016 Australian Open against Fernando Verdasco.
Murray made to toil in 7-5, 7-6, 6-2 straight sets win over Marchenko.
Roger Federer is seeded 17th in the tournament.
Murray is currently the number one tennis player in the world.
Murray begins his first Grand Slam campaign as the number one ranked player in the world.
Murray recently increased his lead over Novak Djokovic despite Qatar Open final loss.
The 25-year-old secured a comfortable 6-4, 6-2 victory over the world number three.
Federer missed 6 months on the 2016 season owing to a knee injury.
Murray aiming to win his maiden title in Melbourne after five defeats in the final.
Konta too good for Eugenie Bouchard, while Evans upsets world number eight Dominic Thiem.
Federer took a 6-month hiatus owing to a knee injury in 2016.
Djokovic began 2017 by winning the Qatar Open.
Murray has won the pre-Wimbledon tournament at the Queen's Club for a record five times.
Lebron James, Phil Mickelson and Tiger Woods lead earnings list for the last 12 months.
Federer is currently ranked world number 17 going into the 2017 Australian Open.
World number 14 has also withdrawn from the World Tennis challenge in Adelaide due to a knee injury.
Murray lost five Australian Open finals in the past, four of which came against Novak Djokovic.