Kinsler, who has been on the disabled list since Aug. 18, had been trying to return to action without undergoing surgery. Thursday, he acknowledged that would not be possible.
"The doctor said the progress I was making just wasn't significant enough and if you don't have surgery for this, it's something you are always going to be dealing with," Kinsler said, according to the Dallas Morning News. "It's the only option."
Dr. John Preskitt will perform the surgery next week, according to the Morning News. Kinsler said he should be able to run at full speed in six to eight weeks.
The decision likely ends Kinsler's quest for a batting title. His season will end with him batting .319 and he has enough at-bats to qualify for the AL batting crown. But he trails AL leaders Dustin Pedroia of Boston, who's hitting .333, Rangers teammate Milton Bradley (.327) and Minnesota's Joe Mauer (.322) entering Friday's games.
The Rangers are also without outfielder David Murphy, who is on the disabled list with a knee sprain. But Rangers manager Ron Washington said he doesn't want to rush either player back into the lineup and jeopardize his future.
"Say we get to the middle of September, and they're still not ready to go," Washington said Wednesday, according to The (Fort Worth) Star-Telegram. "What good is taking a bigger chance on getting them hurt? We're not going to rush it."
A first-time All-Star this year, Kinsler hit .319 with 18 homers, 71 RBIs, 41 doubles and 26 steals in 121 games.
The Associated Press contributed to this report.