The 31-year-old defender has made over 400 appearances for Bayern, winning the Bundesliga and DFB-Pokal six times apiece, the UEFA Champions League, Super Cup and FIFA Club World Cup.
"I am playing for this club since 1995. Why should I change the club at the end of my career?" said the former Germany international.
"For me there is only FC Bayern. I will definitely end my career here."
Lahm retired from international football last July and is in no doubt that he timed the decision perfectly after captaining Germany to World Cup glory in Brazil.
He added: "I think it is important to get the right time for a retirement.
"I did not want to play until I have to say I need to stop playing because I cannot perform well enough anymore. You want to make the decisions on your own. I have a family at home.
"These 10 years with the national team were great. I enjoyed it. For me it was a great honor to be with the national team and I think you were able to see this. But I want to save these memories of these 10 years like I experienced it - 10 awesome years.
"In the end I don't want the people to say at some point 'Okay, now he should quit'. I want to save these memories how I experienced it. That is why it was the right time for me."
Bayern are on course to retain their Bundesliga title at a canter – they boast an eight-point lead over nearest rivals Wolfsburg – but Pep Guardiola's side endured an inconsistent start to 2015 before finding form with emphatic 8-0 and 6-0 wins over Hamburg and Paderborn respectively.
"We lost it at the beginning of the second leg of the season and there are a lot of reasons for this," added Lahm.
"But we work on this at the moment. It will not be a problem to find back to our game again."
