The 20-year-old was a key part of the Foxes side managed by Enzo Maresca which won the Championship title last term, bringing the club back to the Premier League at the first time of asking.
Fatawu found the net on six occasions and provided an eye-watering 13 assists across 40 second-tier appearances, with Leicester finishing ahead of second-placed Ipswich Town.
The winger has been battling to keep his spot in the starting XI under the new leadership of Steve Cooper this campaign, starting eight top-flight matches.
Fatawu is becoming an increasingly-important feature on the international stage, earning 24 senior caps for Ghana since making his debut in 2021.
Leicester star Fatawu out for the season
Involved for 45 minutes of Ghana's African Cup of Nations qualifier against Angola last Friday, Fatawu revealed on Wednesday night that he has undergone surgery on a knee injury.
Speaking to the media ahead of Leicester's Premier League hosting of Chelsea on Saturday, head coach Cooper provided a sobering update on the 20-year-old.
"It is not good. It is a serious injury. It is an ACL injury that rules him out for the rest of the season," the Welshman told the press on Thursday morning.
"A young player with a serious injury, it is a blow for him and a blow for us as well. We have very much now got to support him in every way in making his rehab as smooth as possible so that he comes back stronger. It is difficult news.
"He is a big talent and a young player who is exciting. There is so much to be excited about with him. He was starting to show real good signs of the potential he has.
"But it is only a pause. As difficult as this is, we will make sure he comes back stronger, which with the mentality he has, that will happen."
Leicester's options without Fatawu
With Fatawu now sidelined for the remainder of the campaign, Leicester will need to come up with a new solution on the flanks as they fight for Premier League safety.
Limited to spots on the bench prior to the international break, the likes of Kasey McAteer and Stephy Mavididi could be in line for increased game time.
Winless in their last three top-flight contests, the Foxes are currently occupying 15th position in the Premier League standings, three points ahead of Crystal Palace in 18th.