The move came after a Turkish government official this weekend called on the Swedish Academy to change the decision to award Handke the prize.
Handke, 76, was recognised for "an influential work that with linguistic ingenuity has explored the periphery and the specificity of human experience", the Academy said when the award was announced in October.
The Croatian foreign ministry said meanwhile that its ambassador would not be attending because an award was being given to someone who was "politically engaged in supporting Slobodan Milosevic's Greater Serbian policies in the 1990s".
"Consistent with our initial reaction, we have also instructed the Ambassador of Albania to Sweden to boycott the Nobel Prize ceremony for (Peter) Handke", Acting Albanian Foreign Minister Gent Cakaj wrote on Twitter.More news: Microsoft is killing off Wunderlist in 2020
Croatia thus joined a group of countries who have chose to boycott the event.
"I do think that Handke's aesthetic achievements are fantastic: his writing is handsome, he thinks very deeply about his words, but I don't think you can separate that from his toxic political positions", she said. "Celebrating Peter Handke's Nobel Prize would be pure hypocrisy on my part", Englund said on Friday.
The former Permanent Secretary of the Swedish Academy and current member, Peter Englund, also announced last week that he would boycott this year's ceremonies over the election of Handke as 2019 literature laureate.
Englund's announcement came a day before Handke gave laureate's lecture on December 7 and the ceremony on December 10 when he will also receive 9 million Swedish kronor ($944,000) as well as a medal and diploma.
Rebecka Kärde said she didn't want to "apologise for the hair-raising things that Handke has undoubtedly said and done".More news: Snapchat Cameo Will Let You Deepfake Yourself Into Popular Video's
Co-organizer Teufika Sabanovic, who lost her father in the Srebrenica massacre in Bosnia 1995, told dpa she hoped at least 500 people would attend.
Handke is known for his friendship with "The Butcher of the Balkans", Slobodan Milosevic, and for denying Srebrenica genocide at the hands of the Serb Army of Republika Serbska, who killed more than 8,000 Bosniak men and boys under the command of war criminal Radko Mladic.
"Stand up if you support the Serbs", he said in an article he published during the war in Kosovo.
Vucic also invited Handke to visit Serbia.
"Not one word I have written about Yugoslavia can be denounced, not a single one".More news: North Korea opens mountain spa, ski resort in tourism push