The 33-year-old, who has been with the Aviva Premiership outfit since the 2006-07 campaign, has admitted that it was a tough decision to make.
"I feel that this is the right decision with regards to me and my career at this stage," Court told the club's official website.
"It is going to be very sad when the time comes to actually leave and finish up, but there is a lot of rugby left for me with the Province. There are six months remaining of this season, so there is even more motivation for me to make the most of it while I am here and to try and help Ulster win something."
Court has 32 Ireland international caps to his name.