The loss of Holmes, 28, will come as a major setback to the Jets who are already without stand-out cornerback Darrelle Revis, sidelined for the year with a knee injury.
Holmes arrived in New York following a trade with Pittsburgh in April 2010 and he has played a total of 32 games for the franchise, scoring 15 touchdowns.
The Jets have moved to sign free agent wide receiver Jason Hill - who has had stints with San Francisco and Jacksonville - to strengthen their receiving options.
"Santonio is one of the top receivers in the game and it is a big loss," head coach Rex Ryan stated.
"With that comes opportunities for other guys to step up. I believe as a football team, especially after that performance last week... we need to step up.
"I think you'll see improvement in our football team despite the loss of Santonio."