The England international has been one of the Tigers' most consistent performers of late, captaining the side on a number of occasions and leading the Saxons to a Churchill Cup win this year.
Tigers director of rugby Richard Cockerill admitted the loss of Crane is a setback for his side.
"It is a blow for Crane, who loves playing and just wants to play. It is tough for him as a 25-year-old to be having a year out of the game," Cockerill told the Leicester Tigers website.
"He has had an ongoing knee problem and it has got to the point where he can't continue.
"It is clearly not ideal at this point in time with the World Cup on the horizon to lose someone of his playing ability and his leadership ability.
"We have the likes of Julian Salvi, Thomas Waldrom, Ben Woods and Steve Mafi as back-row options and we will crack on."
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The entire All Blacks apparel line has been updated for 2013/14. Check out the New Zealand All Blacks polo.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Gilbert Blitz 8S rugby cleat is a great cleat at a great price of $69.99. Get a new pair of cleats today.
A cool looking all black rugby cleat with the high performance adidas is known for. Get in the Gear!
Wear the crest of the British and Irish Lions on your t-shirt. A great look for the summer.
The All Blacks Performance t-shirt is black with hints of blue from the training jersey. Very Cool.
The New Zealand All Blacks training jersey for 2013/14. Get in the Gear!
The USA Rugby Pro Alternate rugby jersey is perfect for any fan of the Eagles. Get yours to wear during the summer Test matches.
The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.