The 90-minute operation on his left knee also involved microfracture surgery, an intricate procedure requiring a recovery time of between six and ninth months.
"Grady is expected to participate in exhibition contests next March when camp opens in Goodyear, Arizona," the Indians said in a statement.
The loss of Sizemore for the rest of the season is a major blow to a Cleveland team already 11 games back of the American League Central division leading Minnesota Twins.
Sizemore initially hurt his knee during spring training but the 27-year-old played through the pain before aggravating the injury on May 16 against the Baltimore Orioles. Three days later he was put on the disabled list.
Following consultations with several doctors, he had arthroscopic surgery in Vail, Colorado with Dr. Richard Steadman, a pioneer of microfracture surgery.
"Steadman felt today's procedure was necessary to give Grady both the ability to make a complete recovery from his left knee injury and for him to return to a high-level of play for many years to come," the team said.
Three-times All-Star Sizemore was batting .211 this season with no home runs and 13 RBIs in the number two spot for the Indians when he went on the disabled list.
(Writing by Mark Lamport-Stokes in Los Angeles; Editing by Frank Pingue)