The 41-year-old forward, who has been out this season due to an injured disk, spent the majority of his NHL career in Ottawa.
He played 17 seasons with the Ottawa Senators before signing with the Detroit Red Wings for the 2013-14 season.
There has been speculation over the past week that an official announcement was imminent. It was reported earlier this week that Alfredsson decided he would not play this season with the Red Wings.
The announcement should take place in front of fans prior to the Ottawa Senators Dec. 4 game against the New York Islanders.
Almost a year ago, Alfredsson was welcomed back to Ottawa with a tribute video and a standing ovation from Senators' fans during a game against Detroit.