The French Football Federation has confirmed that Benzema won't be able to play in the World Cup due to a thigh injury.
The Ballon d'Or winner was forced to leave France's training session early after he injured his ankle.
The French football federation said that Benzema was out of the tournament.
The Real Madrid forward was forced to give up on the World Cup after he injured his left thigh.
After feeling some pain in his left thigh, Benzema had to leave the first full training session with Les Bleus.
The FFF said that he went to a hospital in the Middle East for anMRI Scan to confirm a tear.
"In my life I have never given up but tonight I have to think about the team, as I have always done, so reason tells me to leave my place to someone who can help our group make a good World Cup."
I would like to thank you for your support.
The coach of France said that he was sad for the man who had made the World Cup a major goal. I have full confidence in my group despite the French team's loss. We will do our best to meet the challenge.
Benzema has played less than 30 minutes for Madrid since winning the Ballon d'Or.
At the World Cup in France, Benzema was the top scorer, but he didn't play in the World Cup victory. He was France's top scorer at the European Championship with four goals.
Christopher Nkunku was injured just minutes before the end of the team's previous training session on Tuesday and has since been replaced in the squad by another player.
Four years ago, France won the World Cup with the help of N'Golo Kante and PaulPog.
In the pre-season, he injured his knee and had surgery to fix it. The 29-year-old resumed training before he was told he wouldn't be playing for France before the World Cup.
Kante has only appeared in two league games this season due to his injury. He will be out of action for four months.
There is an anxious wait to see if Raphael Varane is fit to play for France against Australia, exactly a month after he was injured.
World Cup winner Presnel Kimpembe pulled out of the France squad on Monday after failing to recover from a injury.
France has a strong attack even without Benzema. They are likely to start with either Kylian Mbappe or Ousmane Dembele, or both, as the central strikers.
France has four players who have scored 50 or more goals: the 49-year-old Giroud, the 42-year-old Griezmann, the 21-year-old Mbappe and the 22-year-old Carrasco. Barcelona is in first place in the Spanish league.
A replacement for Benzema must be found by Monday, the eve of the Australia game. Wissam Ben Yedder has three international goals.
Before they play Tunisia on November 30, Les Bleus will play a game against Danes.