England Head Coach Brian Ashton commented: "It is unfortunate for Mike (Tindall) and England because I felt he played a key part in our recent success, and I hope he makes a swift recovery."
Tindall will remain in hospital for the next few days after undergoing an arthroscopic wash out to clean the possible infection to his left knee. With the 53 times capped Rugby World Cup winner sidelined, Newcastle's Mathew Tait is his likely replacement against Wales.
Elsewhere, stand in skipper Mike Catt (hamstring) should be available to train later this week, together with Toby Flood (leg). Andy Farrell, meanwhile, will not join up with the England squad this week as he continues to have treatment on his lower back.
A decision on fly half Jonny Wilkinson's availability for the Wales game will be made on Tuesday; he has been suffering from a hamstring strain, and was not involved against France.