The Rangers winger was stretchered off during his side’s 3-1 Betfred Cup win over Kilmarnock at Rugby Park. The former Brighton wideman appeared to catch his foot on the artificial surface.
The 28-year-old, who signed a permanent deal at Ibrox this summer after a successful loan spell, went for scans after the incident which confirmed the club and player’s worst fears.
Gers boss Steven Gerrard, who described Murphy as a “huge player” added: “Sad news for Jamie as he will be missing for the remainder of the season with an ACL injury.
“He has been excellent for me since day one, we are trying to help him in every way we can to give him all the support he needs.
“The important thing now is the player and his care, and we will ensure he sees the experts and support him along his recovery.”
The former Liverpool captain also confirmed he is still on the lookout for defensive cover, adding: “We are still looking for defenders at present but Niko [Katic] and Connor [Goldson] have been solid at the back. “They have been brilliant for me.”
Gerrard confirmed that he is “very hopeful” of having Kyle Lafferty in his squad for Thursday’s Europa League first leg against Ufa.
Rangers and Hearts have reached an agreement for the Northern Ireland striker and the Light Blues hope to register him before Wednesday night’s deadline.
Gerrard said: “It’s very close. Verbally, there is an agreement in place but as you know when you get that verbal agreement there is still bits and bobs to do around it.
“If we do manage to do it in time, of course he will be available and be involved, but I don’t want to jump the gun and get excited too early.
“We have a verbal agreement with Hearts and we are very hopeful it will be done and dusted to make him available. If not, we have to be a bit more patient.”