The 26-year-old tore his anterior cruciate ligament when fielding for Central Districts Stags against the Northern Knights over the weekend, local media reported.
The injury rules Bracewell out of New Zealand's home test and limited overs series against Bangladesh later this month and in January and possibly the three-match one-day series against Australia from Jan. 30-Feb. 5.
Bracewell, who was overlooked by selectors for the Pakistan test series, last played for the Black Caps in a one-day international against India in October.
(Writing by Ian Ransom, Editing by Ken Ferris)