The Brazil forward was in tears after being stretchered off against Lille on February 19 in Ligue 1 just days after a 1-0 loss to Bayern Munich in the Champions League.
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And Neymar, who was already ruled out of the second leg, will now miss the rest of the campaign.
Neymar will have to undergo surgery, PSG have confirmed, and will not return to training for up to four months.
It is a huge blow for Le Parisiens boss Christophe Galtier, whose future might be decided by how the French giants perform in the Champions League.
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PSG go to the Allianz Arena and needing to overturn the one-goal deficit to progress to the last eight of the competition.
But without one of their most important players, that task has become intrinsically more difficult.
The challenge happened in the 51st minute of PSG's clash against Lille in Ligue 1 in February when Benjamin Andre made contact with the forward.
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Neymar fell and landed awkwardly and received lengthy treatment on the pitch with TV replays showing showing that he twisted it badly.
He was eventually stretchered off in tears having damaged the same ankle at the World Cup in Qatar just months before with Brazil.
An MRI scan showed that the former Barcelona star had sprained his ankle but not fractured it, however, recent tests have proved that it is now much worse than first thought.
Neymar will now travel to Doha, Qatar, to undergo surgery to repair the ligament but this is becoming a recurring issue for the 31-year-old, who has suffered several big injuries across his time in Paris.
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He has already missed over 100 games for PSG due to injuries while this is the fourth ankle problem he has had since 2020 that has seen him miss 20 matches alone.
The most Ligue 1 games he has played in one season for the Ligue 1 champions is just 22 due to availability issues. That happened last season which saw him make 28 appearances overall.
Neymar joined PSG in 2017 after a record-breaking £198million transfer from Barcelona.
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Since then, he has won four Ligue 1 titles and three Coupes de France but the Champions League has eluded him in Paris, though he did win one while at the Camp Nou in 2015.