Watson tore the ACL in his right knee during practice last week, although video showed that he may have initially been injured during a Week 8 loss to the Seattle Seahawks.
A source previously told Schefter that the projected timeline for Watson's recovery is eight to nine months. Watson returned from a torn left ACL in five months while he was a college quarterback at Clemson.
The rookie quarterback was placed on injured reserve Friday after a blistering start to his NFL career, when he threw for 19 touchdowns in seven games.
Tom Savage replaced Watson at quarterback for a 20-14 loss to the Indianapolis Colts on Sunday. T.J. Yates was the backup against the Colts, and the team signed Josh Johnson to the active roster Tuesday.
Stephen A.: 'Watson brought something special to Texans'
Stephen A. Smith says that Deshaun Watson's injury is devastating for both the Texans and football fans, as the rookie QB made Houston an exciting team.