He will be out of action for up to three months and will miss the RBS 6 Nations Championship.
Leicester Tigers forwards coach Richard Cockerill said: "It is a big blow because he has been in excellent form for us since his return to the team a couple of months ago and he is an experienced player at the top level.
"We feel for him, he has been unlucky, but we have a strong squad at Leicester and whoever comes in will now have their opportunity."
England team manager Martin Johnson said: "I know how hard Lewis worked to recover from his previous injury so my thoughts are with him and I wish him a speedy return to fitness."
Moody said: "There is never a good time to get injured, but it is even more frustrating when you are playing well.
"I have felt good since I got back into the Tigers team and I was gutted when I found out the details and a break was confirmed."
A decision on a replacement in the England Senior Elite Player Squad will be made after the Heineken Cup and European Challenge Cup matches concluding on Sunday, January 25.
