Hodgson suffered the injury early during Canberra's Round 1 clash against the Cronulla Sharks, being taken from the field during the opening ten minutes.
It had originally been feared Hodgson had injured his ACL, however, the club have now changed their view on Hodgson's knee, deciding he needs surgery.
The Parramatta Eels-bound rake has a partial ACL tear and associated injuries according to a club statement, with further scans revealing a knee reconstruction is the best course of action.
“Josh’s knee injury sustained in round one was a minor injury, however his return to training has since uncovered some instability in his knee which appears to have caused his current injury,” Dr. Greg Macleod - the Canberra Raiders' club doctor said.
“After further scans and diagnosis, the decision has been made that it’s the club’s duty of care to Josh for him to have an ACL reconstruction due to a partial tear in his ACL and associated injuries.
“Whilst the club and Josh were optimistic that the injury could be rehabbed without surgery, it is with much considered thought that surgery is the best option for Josh’s long-term health and rugby league career.”
It means Hodgson's time wearing lime green will end on the sidelines, with the club moving into life after Hodgson era sooner than they would have anticipated.
Tom Starling, who started during Round 2 against the North Queensland Cowboys in a horror loss, will continue to wear the number nine jersey - a role he was supposed to move into on a full-time basis from next year when Hodgson joins the Eels on a new deal.