The star batter, 37, is set to play at least three more games for the Melbourne Renegades before calling time, having stepped away from international cricket last February.
Finch went public with his decision ahead of the Renegades' clash with the Hobart Hurricanes in Melbourne on Thursday night.
"There've been some real lows but great highs, and I've loved every bit of the journey," Finch said.
"I'm really proud to have played at the one club for the entirety of my career.Â
"The Renegades have been a huge part of my life and I'm so grateful for everything they've given me."
It means Finch could face long-time Australian opening partner David Warner in his final game - the Renegades and Warner's Sydney Thunder clash in the last BBL fixture of the summer.
The match could also be Warner's final game on Australian soil, with the veteran left-hander set to begin life as a T20 gun-for-hire overseas after the BBL wraps up.
Finch led the Renegades to a maiden BBL title in the summer of 2018/19, the side overcoming local rivals the Melbourne Stars in the final.
"No moment can compare to winning the BBL title, that for me was very special and something I'll remember," Finch said.
He was named captain in the Renegades' team of the decade in 2021 and holds the record for most appearances with the franchise - 107, including Thursday night's game.
A foundation player for the Renegades, Finch is currently the second-highest run-scorer in BBL history with 3311 runs behind only Chris Lynn, who has made 3638.
Finch is expected to continue media duties with Fox Cricket and could return to play in the USA's Major League Cricket, having participated in the competition's inaugural season last year.