Digne picked up the injury while training with the Toffees this week.
He is set to have surgery on Monday and will play no part in Everton’s remaining games for the rest of the year.
Digne has played in all but one of Everton’s Premier League games this season and has provided four assists for his teammates. The only game he has missed was the trip to Newcastle United at the start of the month when he was suspended for picking up a red card against Southampton in their previous game.
The former Barcelona defender’s lengthy absence means the onus will likely fall on 20-year-old Frenchman Niels Nkounkou to fill in at left-back but Ancelotti has backed his charges to cope the loss.
'It is a big loss because he is one of the best left-backs in Europe at the moment but we have to manage this,' said Ancelotti of Digne's injury ahead of the visit of Leeds on Saturday.
'I think we will be able to adapt to the loss of Lucas Digne for two or three months.
'Three centre-backs can be an option still. We can use Iwobi on the left without problem as a wing-back so we will see.'