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In a statement released by the team, Rocky Arceneaux, Jones' agent, said the former third-round pick "is experiencing a minor setback and we expect a full recovery within a few months."
Jones had been rehabbing and doing conditioning with the team but had not been cleared for football activities. The Giants, who have stuck with Jones throughout the accident and multiple surgeries on his leg and foot, will continue to support the player.
"We consider Chad to be part of the Giants family, and we'll continue to work with him in his rehab," general manager Jerry Reese said in a statement. "As we've said since his accident, we're thankful he is alive and able to lead a normal life."
Jones has undergone more than a dozen surgeries and has a metal rod through his shin, with two screws near his ankle and two screws under his kneecap. He nearly died in a car accident on June 25, 2010, but doctors scrambled to save Jones' foot and leg during 10 hours of surgery.
Doctors had to transplant a vein from Jones' right leg into his left shin because he had severed an artery, and blood was not flowing to his foot.
The Giants transported him to New York shortly after the accident, and Jones underwent a dozen surgeries, including orthopedic, plastic and vascular procedures.
He spent the last two seasons vigorously rehabbing while on the reserve/non-football injury list. He had to learn how to walk again before he could start jogging.
"Chad had a severe injury to his left leg, involving a complex tibial fracture with associated injury to muscle, nerves, and vascular structures," said Dr. Scott Rodeo, a Giants associate team physician. "This type of injury is often limb threatening, and can sometimes require amputation.
"He has made a remarkable recovery to date. However, at this time he has residual sensory loss, muscle weakness, and tenuous soft tissue coverage in the involved lower leg. The resultant functional impairment precludes his ability to perform physically at the level required for professional football."
Jones inspired many of his teammates by being with the team during the offseason and doing conditioning drills.
"We would like to thank the Giants organization for the manner in which they have supported Chad since his unfortunate accident two years ago," Arceneaux said. "Their genuine support and caring has far exceeded their obligations and he and his family will be eternally grateful. Chad is experiencing a minor setback and we expect a full recovery within a few months. He thanks everyone for their continued support and prayers. He will see his teammates on the field soon."The Giants also announced they have signed three free agents from last weekend's rookie camp: Florida safety Will Hill, Southeast Louisiana wide receiver Brandon Collins and Georgia State linebacker Jake Muasau.