"Matt had quite an extensive operation to repair the ligament in his left knee," physio Barry Holmes told the club's official website.
"I spoke to him yesterday and he feels fine. He's resting up at home for a few days then he will be back in with us next week to start his rehab work. But he's going to be out for six or seven months at least.
"He's a great lad and, despite all the bad luck he's had with injuries, he'll know he will get back from this and will be focussed on getting fit again."
Wolves have also revealed that Darren Potter may not join up with the Republic of Ireland party for their Euro 2008 qualifying double header with Slovakia and the Czech Republic due to a groin problem.
"We are keeping in touch with the Irish team so they are informed with what's going on," added Holmes.
"No-one, ourselves or the Irish, would want to risk a player if he's not right."