Wawrinka, who turned pro in 2002, has won 16 tour-level trophies during his career, including a Masters 1000 title at Monte Carlo in 2014.
He also secured gold for Switzerland in doubles at the 2008 Olympic Games in Beijing partnering Roger Federer.
Known for his one-handed backhand, Wawrinka beat the world number one player in all three of his Grand Slam finals.
Wawrinka, who will turn 41 in March, has struggled with injuries in recent years and is currently ranked outside the top 150.
“I still want to push my limits and finish this journey on the best note possible,” Wawrinka added.
“I still have dreams in this sport. I’ve enjoyed every part of what tennis has given me, especially the emotions I feel playing in front of you.
“I’m looking forward to seeing you one more time, all around the world.”
Wawrinka’s first outing of 2026 will come at the United Cup team competition in Perth from 2 January.