The former Manchester United manager says the 34-year-old now has 'no future' in international football and will not go to the 2022 World Cup in Qatar.
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Norwich glovesman Krul has been a regular of the Netherlands squad ever since making his debut against Brazil back in 2011.
But he was left out of the 25-man squad for their Nations League games against Poland and Belgium.
Despite missing out on a place in the team, Krul was invited to take part in a specialist penalty training session during the international break, along with called-up goalkeepers Remko Pasveer of Ajax, Jasper Cillessen of NEC, Mark Flekken of Freiburg and Andries Noppert of Heerenveen.
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However, the veteran declined the offer.
Krul is known as a spot-kick specialist, and was even brought on by Van Gaal for a penalty shoot-out against Costa Rica in the 2014 World Cup, replacing Cillessen and going on to make two saves to see the Netherlands through to the semi-finals.
But now it appears his international career is over - as long as Van Gaal remains in charge, at least.
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Van Gaal told the media about the situation: "Krul called me to tell me that he will pass.
"I thought it was a shame, because I know that he stops the most penalties in terms of statistics.
"There is no future for him at the Oranje, because he did not want to come. That is the consequence of his decision.
"I've always thought that you can train a penalty kick.
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"Not the moment and the pressure, but you can automate your process and that gives confidence.
"I have convinced the boys that they can do something with it, that players at the club will train for penalties.
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"You cannot change the training policy at their club, but you can request them to practise their own penalty kicks."
Despite being in the squad since 2011, and playing at every level for his country since 2002, Krul has only made 15 senior appearances for the Netherlands.