The LA Galaxy midfielder revealed earlier in the week that he had failed to make the cut for the final 18-man squad.
Giggs is expected to be named as one of three overage players when it is announced on Monday and, despite his feelings on the decision, but accepts that Stuart Pearce must select a side that can win the tournament.
"As a former teammate and friend of David's, I'm immensely disappointed for him," Giggs told Sky Sports.
"I wish he was in the squad, but it's Stuart Pearce's job to pick a team that he feels can win the gold, and that's what he's done.
"Unfortunately David isn't in that 18, but he'll take it on the chin. It's one of those things that just wasn't meant to be."
|GOING FOR GOLD
|11/2||Great Britain are 11/2 with Paddy Power to win the Olympic Games football tournament.|
Great Britain have been drawn in Group A of the tournament, along with Uruguay, Senegal and the United Arab Emirates, and Giggs admits he is excited to play in an international tournament after missing out on numerous occasions with Wales.
"Just coming to London and feeling the buzz around the place for the Olympics and seeing the signs everywhere has got me really excited.
"It's a massive event and one that I'm looking forward to, and I'm sure the lads who are picked will go out and do the best they can."