The Gloucester full-back was injured minutes into the second half of his side's 32-37 defeat to London Wasps on Saturday but refused to leave the field despite the obvious pain he was feeling.
He was operated on at Gloucestershire Royal Hospital on Sunday and will now miss potential involvement in the Under-21 World Cup with England or possible tours with the England senior squads this summer.
Head coach Dean Ryan told www.gloucesterrugby.co.uk "It was very brave of him to play on when he was obviously in pretty serious discomfort.
"I think it epitomises the spirit we have within this group of players - Olly was in there right to the end fighting for the cause. That is a hugely impressive characteristic in a young player.
"He has been outstanding for us this season and now we naturally wish him all the very best in his recovery."
Morgan, who has made 12 Premiership appearances this season and scored against Leicester in November, is expected to be fit to resume pre-season training in July.
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