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Boyle, a regular starter for Graham Arnold’s side during qualifying, was unable to overcome the injury which he sustained playing for Hibernian in the Scottish Premiership last month.
The 29-year-old has been replaced in the Socceroos' 26-man squad by Melbourne City starlet Marco Tilio.
Speaking to SBS Sport, Arnold said it was a devastating blow for both Boyle and the Socceroos.
“Boyley is such an energetic guy and he’s always great to have around the dressing room,” Arnold said.
“He’s probably been one of our best players right through the whole qualifying journey, but at the end of the day, it is what it is.
“He’s accepted it, and the medical staff has done everything possible to get him fit, but it hasn’t worked out.“
Boyle failed a fitness test last night, opening the door for 21-year-old Tilio to officially take his place in the squad.
“Funnily enough, he (Tilio) was on standby at the Olympics,” Arnold added.
“He came in and went into the first game and scored against Argentina, so he’s got the same thing again this time.”
It’s not the only injury headache for Graham Arnold, with Ajdin Hrustic unlikely to be available for Wednesday morning’s opening group game against France.
“Ajdin is fine, the first game is probably a little bit too near for him,” Arnold revealed.
Arnold expects the dynamic playmaker to be fit for the Socceroos' second group match against Tunisia on Saturday night.
