The 46-year-old, who plays Bond in the 'Skyfall' sequel, sustained the injury earlier this week during the shoot of an action scene, reported the Daily Mirror.
"Daniel Craig sustained a knee sprain this week while shooting a fight sequence on the set of Spectre. He will be filming on Saturday as planned," the film's spokesperson said.
The accident, which happened at Pinewood studios in Buckinghamshire, reportedly sparked panic amongst movie bosses as the film is already on tight shooting schedule, a source said.