The news follows the former Germany skipper's decision to after leading die Mannschaft to a fourth FIFA World Cup crown in Brazil last July.
'I want to win the Champions League again'
"My contract at Bayern ends in 2018: I'll be 34 by then, which is the right time to retire," Lahm told French sports daily L'Equipe. "I'm not the sort of person to keep going until he drops. I want to win the Champions League again with Bayern. I think we can do it again this year. I can't see myself moving [abroad]."
The 31-year-old, who has not featured for the Bundesliga leaders since Matchday 11 after fracturing an ankle in training in November, also intimated that he would remain in football in some capacity, saying: "It's my passion".
Relive Lahm's five best goals courtesy of the official Bundesliga YouTube channel: