The move means Jackson, the NFL's third-leading rusher with 934 yards, will miss the rest of the season for the 5-5 Bills.
Jackson was also a potent receiving threat with 442 yards through the air. His combined total of 1,376 yards from scrimmage trails only Chicago's Matt Forte, who leads the league with 1,391.
He suffered the injury during Sunday's game against Miami.
"This is jus a small bump in the road for me! Lookin 4ward to comin back and finishin the rest of my career in Buff," Jackson wrote on his Twitter account Wednesday.
Buffalo claimed running back Tashard Choice off waivers Wednesday. He has gained 82 yards on 34 carries this season in six games for Dallas and one for Washington.