"I took Roy Keane back once this week," McCarthy told the London Evening Standard newspaper.
"I will not take him
back a second time. As long as I am in charge of the Ireland
team he will not play for us.
"After what he said to me the other night, I could not
tolerate his return to the squad."
Steve Staunton will now take over as captain of the Ireland side for the World Cup.
The Irish completed their build up to the competition with a 2-1 win against J-League side Sanfrecce Hiroshima on Saturday morning.
Meanwhile, Fifa has turned down Ireland's request to be allowed to call in a replacement for Roy Keane.
A meeting of Fifa's World Cup committee in Japan on Saturday ruled out any replacement for Keane.
Ireland will make a further appeal at a meeting with Fifa officials on Monday but the Irish seem likely to have to make do with only 22 players.