The Knicks said on Twitter that a scan of Rose's left knee had revealed a "torn meniscus that will require an arthroscopy.
"He will be out for the remaining five games of season," the Knicks said.
The injury, which has an estimated recovery time of six to eight weeks, comes at a critical time for Rose, who will be a free agent in June.
The 28-year-old has been repeatedly troubled by knee injuries during his career, suffering a torn ACL in his left knee in 2012 that led to a year's layoff.
A torn meniscus in his right knee also sidelined him for the bulk of the 2013-2014 season.
The latest injury is likely to weaken Rose's attempts to secure a lucrative new contract when free agency begins in June.
It also caps a troubled first season in New York for the 2011 NBA MVP following his move from the Chicago Bulls last year.
Rose has averaged 18 points and 3.8 rebounds per game but was fined by the team in January after skipping a game against New Orleans without informing management of his whereabouts.