Wall could miss two months, according to ESPN's Adrian Wojnarowski and reports. The Wizards said they'd provide a timeline for his return after the procedure.
The Washington Post first reported the news Tuesday, adding that Wall will not play in next month's All-Star Game.
The team said the procedure will be performed at the Cleveland Clinic Marymount by orthopedic surgeon Richard Parker, who performed two knee surgeries on Wall in May 2016.
Wall underwent an MRI on his left knee Monday and then met with Parker, who consulted with Wall when he started experiencing inflammation and soreness in November.
Wall banged knees with a Mavericks player in the 10th game of the season and has been dealing with issues since. His knee required an MRI earlier this season and has been drained and received injections.
Wall had been slated to play for Team LeBron in what would have been his fifth straight All-Star Game, but will miss that event in Los Angeles next month. Commissioner Adam Silver chose Detroit Pistons center Andre Drummond to replace Wall on LeBron James' team.
Coach Scott Brooks delivered Tuesday's news to other players at a shootaround ahead of Washington's night game against the Oklahoma City Thunder.
"It's definitely not an easy day,'' Brooks said at his pregame session with the media. "Over the last week, we saw he was dragging a little bit. ... Decided going forward that it would be best for him to get a little cleanout.''
Wall is second on the Wizards in scoring, averaging 19.4 points, and is second in the league with 9.3 assists per game. In July, he agreed to a $170 million, four-year contract extension that starts next season.
The Wizards entered Tuesday tied for fifth in the Eastern Conference with a 27-22 record.
"We don't have the cushion that John can take over a game,'' Brooks said, "or John can create a shot (for himself) or ... for the other guys.''
Information from The Associated Press was used in this report.