Daly ruled out of England's Six Nations campaign
Initially Daly was withdrawn from the England squad for their Six Nations opener against Scotland on February 4, but he will now not feature at all in the tournament.
Daly, who has 57 international caps for his country, was injured playing for Saracens against Edinburgh in the Champions Cup.
"It is estimated he will return to action in around 12 weeks," a statement on the club's website said.
It is another blow for new head coach Steve Borthwick who is already contending with a number of injuries.
Forward Courtney Lawes and hooker George McGuigan withdrew from the squad on Monday with calf and knee injuries respectively, while Exeter forward Luke Cowan-Dickie is ruled out against Scotland with an ankle problem.