LeVert, who had surgery on the same foot in May, will have surgery again this week.
"Caris has been working so hard this season and for this to happen is very unfortunate," Michigan coach John Beilein said in a statement released by the school. "If we know anything about Caris, he will do everything it takes to not only get better, but to help his teammates during this time.
"He is a tremendous young man who I will really miss coaching the remainder of the season. However, I am optimistic he will have a complete recovery."
LeVert has started the past 55 games for Michigan and was the Wolverines' leading scorer at 14.9 points per game. The versatile wing was also averaging 4.9 rebounds and 3.7 assists -- and is considered a likely first-round NBA draft pick this year.
"While this is obviously not what I wanted, I know this team will come together and be stronger because of it," LeVert said in the release. "Now more than ever, it is important for all of us to support this team.
"For me, I am familiar with the recovery process and what work lies ahead for me. I am very confident that I will return 100 percent and have already begun work to ensure that happens."
Michigan has had a disappointing season. The Wolverines are 11-7 overall, 4-2 in Big Ten play, and have home losses to NJIT and Eastern Michigan.
The loss of LeVert will make it difficult for the Wolverines to make a fifth consecutive NCAA tournament appearance.