After Katich decided whether or not to continue playing and announced he would speak about his future at the SCG on Friday, Warne argued that other players - namely the 30-something trio of former captain Ricky Ponting, the middle-order batsman Mike Hussey and the wicketkeeper Brad Haddin - should also be making way.
"Katich losing his contract was a bit disappointing because I think he's been a true performer for a while. But I understand the logic of leaving him out," Warne told the radio station Triple M.
"The one thing about Cricket Australia I would say, and the current [group]; if you're going to say you're in transition, I think for the fans and the public and everyone out there who wants to support the Australian cricket team, let's see some youngsters in there.
"Don't hang on to the older guys in there, say 'we're in transition, give us a bit of time', but have 35 or 37-year-olds still playing Test cricket or one-day cricket. Get them in there, to get some experience and say 'we're in transition'.
"Let's stop sliding down to No. 5 in the world; [if] we keep playing the same players but saying 'we're in transition', it doesn't work."
Warne's sentiments were pointed in their direction at the likes of Ponting and Hussey, and also an indication that he would like to see the new captain Michael Clarke granted the chance to build his own team.
Katich, meanwhile, has taken time to reach his decision, which may involve cricket irrespective of whether or not he decides to play on. Paul Marsh, the chief executive of the Australian Cricketers' Association, has said that for Katich to be lost to Australian cricket altogether would be "a bad outcome" for the game.
Katich has, however, found support in former Australia opener Michael Slater, who unlike Warne, felt that Katich's age was irrelevant given his consistent performance. "I think he has been appallingly hung ... If his replacement (Phil Hughes) came in scoring hundreds and was red hot, then I can understand an injury stopping someone in their mid-30s," Slater told the Daily Telegraph. "But that clearly hasn't happened.
"The system that is being reviewed at the moment around the country, what are they reviewing? The first thing they should be reviewing is the selectors and the selection process and I'd start with the chairman of selectors."