Utah can wrap up the series, which they lead 3-2, with a win on Friday.
Nene had suffered no ligament or meniscus damage as was initially feared, an examination on Thursday revealed, the Nuggets said in a news release.
He will not make the trip to Salt Lake City and his condition will be listed as day-to-day subsequently.
The Nuggets center, who is averaging 11.4 points and 5.8 rebounds, was injured in the first half of Denver's win over Utah on Wednesday.
(Reporting by Gene Cherry in Raleigh, North Carolina; Editing by Clare Fallon)