"As some of you may have heard, my season has come to an end. My knee hasn't been right all year, and we can't seem to get the pain to go away," said McGrady, who averages 15.6 points, five assists, and 4.40 rebounds this season.
"We've tried just playing through it, taking back-to-backs off, and extended periods of rest, but none of it has really been effective in limiting the discomfort and allowing me to just go out there and play," he said.
The Rockets would not confirm that McGrady was lost for the year.
"I've met with numerous doctors and gotten a number of opinions, and unfortunately I will be undergoing microfracture surgery on my left knee immediately," said McGrady.
The 12-year NBA veteran added he was "confident that I will be able to return next season with the same strength and explosiveness you are all used to seeing from me."
McGrady has averaged 22.1 points, 6.1 rebounds and 4.7 assists over his career.
The Rockets are 33-21 this season and in fifth place in the Western Conference.
