Towns' injury appeared to be serious when he went down in a non-contact situation in the third quarter of Monday's 142-127 loss to the Washington Wizards, needing to be helped back to the locker room.
However, according to ESPN's Adrian Wojnarowski, the 27-year-old underwent imaging on Tuesday and is expected to return "sometime in January".
Towns was named 2016 Rookie of the Year and has made three All-Star games (2018, 2019 and 2022).
He is also the only center ever to win the Three-Point Contest during All-Star Weekend.
Towns is not having his best year, averaging 21.4 points per game this season – his lowest figure since 2017-18 – as well as a career-low 8.5 rebounds and a career-low 0.7 blocks.
But his absence is still likely to be felt keenly by a Minnesota team at 10-11, having lost their last three games.