The Jets running back tore the anterior cruciate and medial collateral ligaments in his left knee during New York's 19-6 loss to Pittsburgh on Sunday.
Goodson broke the news himself on his Twitter page early Monday, and coach Rex Ryan confirmed the versatile back is out for the year.
"I think we all saw what we were so excited about, that type of explosiveness that that young man presents," Ryan said. "It's an unfortunate thing, for sure."
Goodson was hurt while trying to make a tackle on Lawrence Timmons' game-sealing interception of Geno Smith in the fourth quarter. Goodson's knee was hit by teammate Brian Winters on the play.
He had to be helped off the field, and an MRI exam Monday morning confirmed the damage.
"Not (too) happy right now," Goodson tweeted. "But Everything Happens for a reason!"
It has been a rough few months for Goodson, who signed as a free agent in March and was playing in his second game since returning from a four-game suspension for violating the NFL's substance abuse policy.
He was arrested in May in New Jersey on drugs and weapons charges, and then missed all of training camp for personal reasons that he declined to discuss in detail. Goodson was then suspended by the league after he returned to the team in late-August.
In two games, he ran for 61 yards on seven carries and caught two passes for 19 yards while showing he could be a pass-catching, change-of-pace back behind Bilal Powell and Chris Ivory.