The Belgium defender was set to take on Wales tomorrow night in their quarter-final clash.
But the 29-year-old's tournament is over after sustaining the injury in training last night.
The Tottenham ace will now be out until August.
The news is a major blow to Belgium as they gear up for their meeting with Chris Coleman's Wales.
Marc Wilmots is already without Thomas Vermaelen who is suspended and could now have to called upon youngsters Jason Denayer or Jordan Lukaku.
The winner of the clash in Lille will take on either Poland or Portugal, who play tonight in Marseille, in the semi-finals.
News that Vertonghen is set for a lengthy spell on the sidelines will also be a blow Spurs and boss Mauricio Pochettino.
The ex-Ajax man formed an impassive partnership alongside compatriot Toby Alderweireld last term as Spurs narrowly missed out on the Premier League title.
The north Londoners did secure Champions League football for next term and Pochettino will be worried by Vertonghen's impending abscene.
