Peters played rugby at Auckland University in the late 1970s.
This is not the first time Peters has been out of action because of the injury.
In early 2007, Peters had surgery on his knee. At the time, a spokesman said the surgery was related to an old rugby injury.
A year prior, Peters was hospitalised after receiving a bug-bite while in Malaysia – he was on bed rest for some time.
Tomorrow, Ardern will travel to Tūrangawaewae Marae in Ngāruawāhia for King Tuheitia's annual Koroneihana, or coronation commemorations.
That means she won't be in the House at question time to answer questions from the Opposition.
As Deputy Prime Minister, Peters often stands in for Ardern when she is unable to be in the House.
As Peters is away, a spokesman from the Prime Ministers' office said Finance Minister Grant Robertson will be answering questions on her behalf.
But the spokesman said deputy Labour leader, and Corrections Minister, Kelvin Davis will likely be back in the House on Thursday and will answer questions on Ardern's behalf.
National leader Simon Bridges wished him "a swifty recovery", Bridges said.
"I think what will be interesting to see is who will be fronting in Parliament this week, given I understand it won't be the Prime Minister. I hope it's Kelvin Davis because he's got many serious questions to answer."