It is a big blow for Squire who has not played at all this season. He was suffering from a hip injury and did not play in the opening month but after some gradual improvement got back on the training field fully last week. It was hoped he would be available for this week's game against the Blues in Auckland on Friday night.
Squire would now have to be a long shot to make the All Black World Cup squad. The earliest he will get back is the middle of May where there will be barely a month left in the regular Super Rugby season.
The rugged flanker has played 23 tests since his debut in 2016.
The Highlanders have ready replacements on the blindside flank in the form of Shannon Frizell and Jackson Hemopo, with Elliot Dixon also able to play on the blindside flank.