He's anticipated to miss the remainder of the regular season and playoffs, dealing a major blow to the Nuggets' hopes of replicating last year's run to the conference finals.
The 24-year-old was injured in the latter stages of the fourth quarter after his left leg appeared to buckle on a drive to the hoop. He writhed in pain and ultimately refused the assistance of a wheelchair before limping off the court.
Murray, the seventh overall pick in the 2016 draft, had missed the Nuggets' four previous games with soreness in his right knee.
In 48 outings this season, he was averaging 21.2 points, 4.8 assists, and four rebounds for the 34-20 Nuggets.
Murray's injury could also damage Canada's hopes of qualifying for the Tokyo Olympics. The Kitchener, Ontario-born point guard was expected to suit up for Canada at the FIBA qualifying tournament in Victoria, British Columbia, scheduled for late June.