The scrum half was replaced in the first-half of the 22-16 defeat to France in Paris and subsequent scans have revealed the 31-year-old has suffered ligament damage which will curtail his participation in the championship.
Scotland skipper Greig Laidlaw has been ruled out for the rest of the Six Nations, the Scottish Rugby Union have announced. Ali Price, who came on against France, turned in a sparky performance, markedly increasing the tempo of Scotland's play and bringing feistiness in the loose.
But he spent just 24 minutes on the field against France and left the Stade de France on crutches before returning to Gloucester on Monday to be assessed by the club's medics.
Scottish Rugby confirmed the 58-time capped player sustained ligament damage against the French.
He will see a specialist later this week to determine the best course of management.
The Scots beat Ireland 27-22 in the opening game of the tournament.
Laidlaw will consequently miss Scotland's remaining fixtures against Wales, England and Italy.
Should the injury to Laidlaw prove serious it could compromise his hopes of being selected in the British and Irish Lions squad for the tour to New Zealand this summer.
The injury robs head coach Vern Cotter of both Laidlaw's leadership skills and his abilities as a kicker.
"They will give us a slightly different emphasis on different parts of the game but the game plan will stay the same".