The Young Socceroos have failed to qualify for the Under-20 World Cup for the third consecutive time after defeat in their AFC Under-19 Championship quarterfinal.
Australia lost 3-1 to Saudi Arabia in Indonesia, with only the top four sides in the continental tournament securing a place at next year's youth World Cup in Poland.
Melbourne City defender Nathaniel Atkinson scored a first-half equaliser for the Young Socceroos after Turki Al-Ammar put Saudi Arabia ahead.
Second-half goals from Feras Albirakan and Saud Abdulhamid sealed the fate of Ante Milicic's side.
With attacking duo Daniel Arzani and Riley McGree unavailable for selection due to club commitments, the Australians managed just one win in their group to finish second behind South Korea.
They drew 1-1 with the Koreans and defeated Vietnam 2-1 before a 1-1 result with Jordan locked them into a showdown with the Saudis.
The Asian qualifiers for the 2019 Under-20 World Cup are South Korea, Saudi Arabia, Japan and Qatar.