The 28-year-old Rose's latest injury setback will require arthroscopic surgery and will be his fourth surgery to either knee -- he tore his left ACL in 2012 and underwent two surgeries on his right meniscus.
Rose, who is set to enter free agency this offseason, averaged 18.0 points, 4.4 assists and 3.8 rebounds over 64 games in his first season with the Knicks.
The Knicks traded for Rose last June in a multi-player deal with the Chicago Bulls. He is in the final year of a five-year, $94 million deal.
Knee injuries have plagued the three-time All-Star and 2010-11 MVP while he was with the Bulls. Rose tore the ACL in his left knee during the 2012 playoffs and missed the entire following season, and he then tore the meniscus in his right knee in his first season back from surgery, costing him the final 72 games in 2013-14.
Rose, who previously said he would like to return to New York, missed the Knicks' previous two games with what the team described as soreness and swelling.
The Knicks are 29-48 after Sunday's 110-94 loss to the Boston Celtics and will miss the playoffs for the fourth straight season.