The left-back, who is at Sevilla this season, has suffered a knee injury.
Telles sustained the knock during Brazil's 1-0 loss to Cameroon on Friday.
Telles has now announced that he is out for the rest of the tournament, with an MRI revealing a serious problem.
"Paths are not straight, they have bends," Telles wrote on Instagram.
"Not every moment in life is joyful, but the bright side of it (and we absolutely always have the counterpoint to sadness) is that after the cry, it's time to smile. I always had a childhood dream, which was to defend my country in a World Cup. And that dream, you can be sure, did not end here.
"My dream remains inside every teammate who will enter the field in the matches until the end of the World Cup. My dream follows inside every fan who screams for our country in the stands. Because this dream was never just mine, it has always been a dream of all those who love Brazil and live intensely football. I follow by heart and fan from now on. In fact, I still feel as I've always felt: a Brazilian who never gave up dreaming. I made a drawing as a kid that showed everything I wanted and actually ever wanted in my life.
"Before the match against Cameroon, I looked at that drawing and asked God to let his will be done. And this is how I'm dealing with every minute since I left the field. Nothing comes without a purpose in our lives. And with the same will of that child who drew his dreams, I will follow my path. Thanks everyone for the love. I will come back even stronger!!!!! THE DREAM CONTINUES."