Federici claims it is too good an opportunity and honour to turn down.
The 23-year-old could miss the first half of the season should the Socceroos make it through to the knock-out stages.
"I was hoping to be challenging Marcus Hahnemann, but the opportunity of playing at the Olympics was too great." Federici told BBC Radio Berkshire.
"I'm going to be playing internationals and I'll return with good experience.
"So this is a great opportunity to cement Australia as a major competitor in all competitions in football."