Forecasting river water levels or streamflow water levels (SWL) is vital to optimising the practical and sustainable use of available water resources. We propose a new deep learning hybrid model for SWL forecasting using convolutional neural networks (CNN), bi-directional long-short term memory (BiLSTM), and ant colony optimisation (ACO) with a two-phase decomposition approach at the 7-day, 14-day, and 28-day forecast horizons. The newly developed CBILSTM method is coupled with complete ensemble empirical mode decomposition with adaptive noise (CEEMDAN) and variational mode decomposition (VMD) methods to extract the most significant features within predictor variables to build a hybrid CVMD-CBiLSTM model. We integrate three distinct datasets (satellite-derived, climate mode indices, and ground-based meteorological observations) to improve the forecasting capability of the CVMD-CBiLSTM model, applied at nineteen different gauging stations in the Australian Murray River system. This proposed model returns a significantly accurate performance with ~98% of all prediction errors within less than ±0.020 m and a low relative root mean square of ~0.08%, demonstrating its superiority over several benchmark models. The results show that using the new hybrid deep learning algorithm with ACO feature selection can significantly improve the accuracy of forecasted river water levels, and therefore, the method is attractive for adopting remote sensing data to the model ground-based river flow for strategic water savings planning initiatives and dealing with climate change-induced extreme events such as drought events.