The right-winger was forced to step down from the match against Slovenia on Friday after he received an early blow to the head.
The medical examination showed that he had suffered a concussion.
He suffered the blow after a minute but played the entire first half before getting off with a headache.
So far into the tournament, Linus Persson had started in Sweden's first five matches and he is after Hampus Wanne the team's top scorer in the World Cup, with 20 goals.
"Of course it feels boring"
- It has been great to be here and play the World Cup and it has been positive to have such a big role in the team, therefore it feels sad to have to quit earlier, he says to the handball association's website.
- I have felt good at the end, the headache has released and I have been able to take the next step on the brain ladder, but I will unfortunately not have time to get ready to play before the World Cup is over.
Persson left the squad during the morning
Swedish national team doctor Daniel Jerrhag:
- Linus has improved significantly since the injury, but we have found that he can not be ready for further participation in the tournament.
Sweden will play the quarterfinals against Qatar at 20.30 on Wednesday night.