Jackson is expected to have surgery next week, the source said.
Jackson made 23 consecutive starts at cornerback before tearing the ACL and meniscus in his right knee during a no-contact practice in October 2008.
He had missed the past three games with a strained ACL in his right knee. Jackson's newest injury came a day after the Colts placed linebacker Tyjuan Hagler on injured reserve with a ruptured biceps.
The team declined to comment on Jackson, whose contract expires at the end of the season.
Adam Schefter is an NFL reporter for ESPN Insider. The Associated Press contributed to this report.