However, the former England man has since made a stunning recovery and after being put through a training schedule that Hill dubbed 'hell' the number nine has been declared fit for the home game with Wasps on Friday night (kick-off 7.45pm).
"Shaun Perry looks to be okay so we look like we will start him on Friday night," revealed Hill.
"The injury was always a bizarre one and anyone who watched the game with Northampton Saints, and saw him get the injury, thought his knee was gone.
"We all suspected the worst and when he was first looked at it looked bad. But it appears now that it is not as bad as we first thought - in fact he has been 100 percent.
"We haven't played him in the LV= Cup games and given him time to test it, twisting and turning, jumping off boxes and doing everything we could do to make sure that knee is ok.
"He has had no reaction and has trained full on in a contact session without any problem.
"We are all amazed," added Hill. "He has given the ligaments a stretch in the knee, but he is fine. We would never risk anyone if we thought there was a chance of any serious problem.
"He has said to me 'I'm alright, put me in there'. There is no reason not to pick him and we will almost certainly pick him and start him on Friday night.
"We had a scan that shows hotspots, but the surgeon said at the time it was not worth operating on. He has been proven right. He said he felt Shaun was okay and he should get on and do it.
"You look at scans and see trauma, but the surgeon didn't want to operate on it and Shaun was very happy.
"We have kept it quiet because, as they say, seeing is believing. We have put him through two weeks of hell to make sure his knee is perfectly good and he has come through two weeks of gruelling fitness and been fine. He is delighted by the news."
Hill also paid tribute to the impact that Ollie Frost had made in recent weeks and revealed Jonny Arr was pushing for a playing return in the Aviva A League game with Leeds Carnegie on Monday.
"It has been a fantastic period for Ollie Frost and he has jumped into the team, much sooner than he would have anticipated, and has done a brilliant job," added Hill.
"He has been great for the team, the way he has got to the breakdown and got the ball away quickly. He has played with a lot of confidence as it is massive step for him.
"He was on the bench against Saracens and, when Jonny Arr got injured, he came on at half-time and did look good. You knew Ollie could step in and do well.
"It has been a massive development curve for him and he has come through really well. I have no problems at all starting with him again."
Tickets for the massive clash with London Wasps are on sale NOW. Call the Warriors Box Office on 01905 454183 or click HERE to buy online!