Jeter made the announcement on his personal Facebook page on Wednesday.
"I know they say that when you dream you eventually wake up. Well, for some reason, I've never had to wake up. Not just because of my time as a New York Yankee but also because I am living my dream every single day," Jeter wrote in the letter.
The 39-year-old captain spent much of the 2013 campaign out with injuries.
Jeter has helped the Yankees win five World Series during a career that has spanned nearly two decades.
He is the Yankees' career hits leader with 3,316.
Jeter has been selected to the All-Star team 13 times.
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