The 36-year-old recently admitted to spending the offseason weighing up his future with the potential of retiring from NBA a possibility.
But Wade will return to Miami Heat and is now expected to sign a $2.4million one-year deal later this week.
The 2018-19 season is set to be Wade’s last though despite being Miami’s franchise leader in points, assists, steals and games played.
The shooting guard announced his decision on social media, ending speculation for the summer.
“I’ve always did things my way,” Wade said in a video posted on Sunday evening.
“Whether they’ve been good or whether they’ve been bad, I got here because I’ve done things the way I feel is right for me and right for my family.
“And what I feel is right … I feel it’s right to ask you guys to join me for one last dance, for one last season.
“This is it. I’ve given this game everything that I have, and I’m happy about that, and I’m going to give it for one last season.”
Wade went into plenty of detail during the ten minute video about his decision and spoke about losing his former agent Henry Thomas to a neuromuscular disease in January.
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“With him not being there last year, that was it,” Wade admitted.
“I lost something in this game.
“Me getting traded back to Miami, it helped, but it wasn’t enough.”
Wade started his career at the Heat and spent 13 years in Miami, winning three NBA Championships.
He then spent a season with Chicago Bulls before teaming up with LeBron James at Cleveland Cavaliers.
But Wade returned to Miami, ending the season with 11.2 points per game.