Selinger's press secretary confirms Selinger has agreed to a leadership contest at the NDP's annual convention in March, and other contenders will be allowed to run against him.
The party is now working out the details as to how the leadership vote will proceed.
Selinger says the vote will give him the opportunity to pitch to the party why he should continue as leader.
The announcement comes in the wake of an internal revolt over low poll numbers and last year's decision to raise the provincial sales tax.
On Nov. 3, five cabinet ministers resigned after they, in addition to one backbencher and two executive members, called on Selinger to step down.
Selinger has not been seen since he shuffled cabinet on Nov. 3 and he has declined repeated requests for an interview with CBC News.