Rodgers was injured on a tackle midway through the second quarter of the Beavers' 29-27 win at No. 9 Arizona on Saturday when he was brought down in the end zone after making an apparent 56-yard touchdown catch. The play was nullified by an ineligible receiver penalty.
"We are tremendously disappointed with the news that one of our team captains and leaders is sidelined for the rest of the season," Oregon State coach Mike Riley said in a statement. "I know James will stay very involved with the team during his rehabilitation process and we look forward to his return as soon as possible."
The release didn't describe the nature of the knee injury and a school spokesperson couldn't confirm the medical details either.
Rodgers, the older brother of Beavers running back Jacquizz Rodgers, ranked sixth in the nation with an average of 176.75 all-purpose yards this season. He was averaging 18.33 yards on punt returns and 28.67 yards on kickoff returns.
Against Arizona, he had seven catches for 102 yards and a touchdown.
Though a senior, Rodgers is eligible for a medical hardship year, per NCAA rules. Rodgers has not redshirted and has played in just four games after missing the Arizona State game on Oct. 2 due to a concussion. The school said in the release it will submit paperwork to the Pac-10 for the hardship waiver at the conclusion of the season.
Rodgers, who earned first-team All-Pac-10 honors in 2009 and some preseason All-American attention this summer, has accumulated the second most all-purpose yards in the nation for active players with 5,784 and is the career leader for all-purpose yards at Oregon State.
"I want to thank everyone for their thoughts and prayers for me ... I really appreciate each and every one of them!" Rodgers wrote Monday on Twitter before it was announced he would not return.
Information from ESPN.com's Pac-10 reporter Ted Miller and The Associated Report was used in this report.