Oxlade-Chamberlain, who joined Liverpool in the summer after a lengthy stint with Arsenal, was expected to feature in Gareth Southgate's squad after impressing this season.
However, Liverpool have released a statement on their website revealing the 24-year-old will miss the rest of the season, including the World Cup in the summer.
The statement reads: "Liverpool FC can confirm Alex Oxlade-Chamberlain's 2017-18 season is over for both club and country due to a knee ligament injury sustained against AS Roma on Tuesday evening.
"The extent of the injury means Oxlade-Chamberlain is set to miss the remainder of the campaign for Liverpool, as well as the World Cup finals in Russia with England.
"The 24-year-old was assessed by the club’s medical team at Melwood on Wednesday morning and no specific timescale is being placed upon his return to action at this stage.
"However, Oxlade-Chamberlain will now begin a rehabilitation programme to enable him to reach full fitness again as soon as possible, returning to action next season."
Oxlade-Chamberlain was taken off on a stretcher in the 15th minute after a challenge with Aleksandar Kolarov and had a scan on Wednesday that revealed the ligament injury.