Wilson, a junior, suffered the injury during a horse-collar tackle in the second half of Kentucky's 38-17 win over Eastern Michigan on Saturday. The injury will require surgery.
"I'm very sorry about Terry's injury," Stoops said in a statement on Sunday. "He has done so much for our program over the last two seasons, both in leadership and his production on the field. As a team captain, he will continue to be an important part of our team and we look forward to him returning to the field when he has recovered."
Eastern Michigan defensive lineman Turan Rush tackled Wilson on a 19-yard run to the EMU 44 late in the third quarter and received a personal foul for it. Kentucky was called for illegal formation on the same play, and the penalties offset.
Wilson was briefly on his knees before laying on the turf to be observed by team medical personnel. His left leg was placed in a brace and he was lifted onto a cart that carried him off for observation.
Wilson has started all 15 games for the Wildcats since joining the program prior to the 2018 season, and Kentucky is 12-3 in that time. He threw for 360 yards and two touchdowns while completing 63 percent of his passes this season and also rushed for a touchdown.
Last year, he threw for 1,889 yards and 11 touchdowns while rushing for 547 yards and four scores.
Junior quarterback Sawyer Smith finished the game for the Wildcats on Saturday. He was 5-of-9 passing for 76 yards and two touchdowns. Smith, a 6-foot-3 Florida native, transferred to Kentucky from Troy in July.
Smith played in all 12 games for Troy last season but started the final seven, throwing for 1,669 yards, 14 touchdowns and six interceptions.