The 22-year-old limped off in Friday's dramatic Europa League win over Borussia Dortmund and left Anfield on crutches with his right foot in a protective boot.
He underwent a scan yesterday and the results indicated ruptured ligaments which could sideline him for up to six weeks.
However, Liverpool's medical team are reportedly hopeful the lay-off will only be four weeks, meaning the Germany international would have a chance of making the Europa League final should the club get past Villarreal in the last four.
It is the second injury blow in a week as fellow midfielder, and captain, Jordan Henderson damaged knee ligaments in the first leg against Dortmund and was also ruled out for the rest of the season.
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