The three-time Indy500 champion sustained a concussion and fractured his spine and right ankle after colliding with Takuma Sato's car and slamming in to a fence at the Houston Grand Prix in Texas on October 6, reported Us magazine.
He was discharged from a hospital in Indiana after undergoing his second surgery on October 14 and was hoping to make a racing comeback in the spring.
However, the 40-year-old has since been advised it is in his best interests to hang up his helmet and racing gloves for good.
He separated from Judd in January this year, but the couple has remained close and she raced to his side following his crash in Houston.