The former Marseille and Shanghai Shenhua striker, who turned 40 at the weekend, will see out his playing days with American side Phoenix Rising.
Drogba outlined his desire to retire last November and, four months on, the ex-Ivory Coast international will push ahead with those plans.
"It's really a pleasure for me to play," he told Telefoot. "I started late at the top level. I really enjoy playing. I like my role of owner-player a lot.
"I'm surrounded by a lot of youngsters, and I like passing my know-how on to them. But this season is the last. I'm 40, it's time now."
Drogba featured 381 times for Chelsea during his two spells at Stamford Bridge, winning four Premier League titles, four FA Cups, three EFL Cups and one Champions League.