News of the injury was first reported by Phytegurus.com, and has since been confirmed by UFC President Dana White.
"It's true Cruz blew his ACL," White tweeted. "Stay tuned for more info."
UFC 148 takes place July 7 at MGM Grand Garden Arena in Las Vegas, NV. A middleweight title bout between Anderson Silva and Chael Sonnen is slated to headline the summer show, while the heavily-anticipated rubber match between Cruz (19-1) and rival TUF: Live coach Faber (26-5) was intended to serve as the co-main event.
"I'm bummed people, thanks for the support as I battle this," Cruz tweeted. "Sorry to all the fans out there! I WILL recover and I WILL be back to put on a show!"
UFC officials have yet to make an official announcement regarding Faber's status on the card or if an interim bantamweight title bout will be created. If so, up-and-coming prospects Renan Barao (28-1, 1 NC) and Michael McDonald (15-1) would be the most likely candidates.
Barao is currently scheduled to fight Ivan Menjivar in a number-one contenders match at UFC 148, while McDonald recently cruised through former champion Miguel Torres en route to a first-round knockout victory last month.