Source: The Wrestling Observer Newsletter
UPDATE: In a correction to previous reports, Rey Mysterio is not out of action with a knee injury. Mysterio is currently out of action with a hand injury. The hand has been swelling badly, which is the reason he has been given time off.
Mysterio wasn’t originally booked for WrestleMania, but the decision was made late to add him to the Andre the Giant Memorial Battle Royal. Additionally, he was not booked for WWE RAW the next night, but a late decision was made to add him onto the show in a match against Bad News Barrett.
Mysterio has yet to sign a new contract with WWE, however the company is looking to sign him in the near future.
His current deal with WWE is up soon, but at this time, he has not signed a new contract with WWE.
ORIGINAL: Last week it was reported that Rey Mysterio was on vacation and not injured. Although Mysterio was on a family vacation, he was also given time off to deal with nagging knee injuries.
As for his WWE future, word is that his in ring work will be limited going forward. The company wants to start transitioning Mysterio into more of an ambassador type of role going forward..