The Cardinals are placing Peterson on injured reserve, the 32-year-old former NFL MVP and seven-time Pro Bowler confirmed in a statement Friday to ESPN's Josina Anderson.
"The good news is my neck injury doesn't require surgery, but I'm told by Dr. Robert Watkins that the best thing for me is just more rest than the length of this season," Peterson said in the statement. "Obviously, I'm disappointed about going on IR when my body is still able to produce, but I look forward to returning completely healthy for another season in 2018. I'm grateful for the opportunity that the Arizona Cardinals have given me to show that I can still contribute on an NFL team."
Peterson, who missed the past two games, was injured in Week 12 against the Jacksonville Jaguars on Nov. 26.
Coach Bruce Arians said this week he wasn't sure whether Peterson would return from the injury and there had been no improvement in his condition.
Peterson rushed for 529 yards and two touchdowns through 10 games this season, including 448 yards and both scores since being traded to Arizona from the New Orleans Saints.
Peterson signed a two-year deal with the Saints during the offseason after his 2017 option was not picked up by the Minnesota Vikings. He spent his first 10 seasons in Minnesota, becoming the franchise's all-time leader in rushing yards (11,747) and touchdowns (97). He was the 2012 MVP after rushing for 2,097 yards and 12 touchdowns.
Kerwynn Williams has been the starter in Peterson's absence for the 6-7 Cardinals, who travel to play the Washington Redskins on Sunday. Williams gained 170 yards on 36 carries in those two games.