Daw has had a posterior cruciate ligament problem which the club has managed during the season.
But North Melbourne decided this week the timing was right to put an end to the emerging forward's season in favour of surgery.
Daw, who kicked four goals in the VFL last week, could have played out the season.
It's expected Daw will be available to resume full training in February.
Meanwhile, North Melbourne coach Brad Scott said enforcer Jack Ziebell would be given until the last minute to prove he has overcome an ankle problem sustained in last week's loss to Adelaide.
Ziebell, who has broken both his leg before, landed awkwardly on his left ankle in the goal square sending shock waves through the Kangaroos camp.