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The 22-year-old - who has never set foot in the country of his father's birth - was told by Socceroos coach Bert van Marwijk that he would not be part of the final squad but that he has a bright future ahead of him with the national team.
Karacic is understood to have been shattered to have missed out on the final cut, losing out to Western Sydney Wanderers fullback Josh Risdon. However, sources suggest he told the coaching staff that he will remain open to continue playing for Australia despite the setback.
Karacic's national team allegiance is yet to be secured by either Croatia or Australia as he remains uncapped at senior international level. Karacic captain was regarded as a potential solution to the problematic right back position for the Socceroos but did not do enough to convince van Marwijk that he is ready yet.
While he may now choose to wait for an opening with the Croatian national team, the door remains open for him to tie his international future to Australia, with the Socceroos eager to keep him involved in the future. It's understood the coaches were impressed by his training but believe he needs more experience before playing in a World Cup and Karacic was understandably slower to bond with other teammates and adapt to the set-up.
The Turkey training camp was Karacic's first experience with the Australian national team and did not know any players before arriving into the camp, only assistant manager Ante Milicic whom he had previously met.