The former Rotherham United player, who is out of contract in the summer, hobbled off in the first half of last week’s home win over Portsmouth after coming off second best in a block tackle with Pompey defender Sean Raggett.
Butler has revealed that the 28-year-old is now sidelined for the remainder of the season.
Butler said: ”On the disappointing side, Jon will be out for the rest of the season. We wish Jon all the best in his recovery and we will do everything we can to help him recover properly.
“I have spoken to Tayls a lot and have asked him to be around the group still. I think he is an important part to the group and a motivator and you must have people around the group who motivate and drive the others on and he is an important part of the club.
“So we want to do what is right by Tayls and make sure he is treated correctly and we give him the best possible chance for next season.”
The club are awaiting the results of scans regarding John Bostock, who went off with a groin issue early on in the second half of Tuesday’s League One loss at Crewe.
Saturday’s home game with Northampton Town is likely to arrive too soon for Omar Bogle, who missed the game at Gresty Road with a hamstring niggle - on a night when Rovers were forced to play without a recognised striker.
Butler is hopeful that top-striker Fejiri Okenabirhie will return this weekend, while Reece James is set to also be available after coming off in the second period at Crewe.
Butler added: “John is probably doubtful. We are waiting for results on his scan. Omar is doubtful, but Fey (Okenabirhie) is looking strong in training and hopefully he will come through unscathed in tomorrow’s (Friday) session and put himself in position for the starting line-up.
“It is obvious that we did not have a (recognised) striker on the pitch (Crewe) and we had no available strikers down to the youth team at short notice to fill spots. It is a case of filling round holes with square pegs at the moment.
“Reece should be involved. He took a heavy whack on the leg, but he seems to have responded really well to treatment."