Following the England series, Southee will decide whether to play a final white-ball match against Sri Lanka after Christmas, New Zealand Cricket said on Friday.
New Zealand's all-time top wicket-taker (770) across all formats, who will be 36 when the England series wraps up in Hamilton at his Seddon Park home ground, said he was at peace with retiring.
"To play for the Black Caps for 18 years has been the greatest honour and privilege, but the time feels right to now step away from the game that has given so much to me," Southee said.
"To play such a big series against the same opponent my Test career began against all those years ago, and on three grounds that are incredibly special to me, seems the perfect way to end my time."
Southee has struggled for wickets in recent series and was largely ineffective during New Zealand's last home summer, taking six wickets in four Tests.
He took three wickets in the recent tour of India, though, where spinners dominated the three-Test series swept by New Zealand.
Southee, who has also played 161 ODIs and 126 Twenty20 internationals, relinquished the Test captaincy to Tom Latham there and is one of only six New Zealanders to have played more than 100 Tests.
Black Caps coach Gary Stead saluted Southee's contribution to the New Zealand team.
"Tim's durability and resilience has been outstanding," he said. "He's an incredibly tough competitor who gets himself up for big occasions and is rarely injured."
Southee was nonetheless confirmed in New Zealand's 14-man squad on Friday for the England series which starts on November 28 in Christchurch.
Selectors included two uncapped players in Otago fast bowler Jacob Duffy and seam-bowling, Wellington allrounder Nathan Smith.
After making his international debut in the first ODI against Sri Lanka on Wednesday, Smith earned his first call-up to the Test squad on the strength of an outstanding season in New Zealand's Plunket Shield.
Smith was the leading wicket-taker in the domestic first-class competition with 33 victims at an average of 17.
Former captain Kane Williamson was also included after recovering from the groin injury that forced him out of the India tour.
The nation's top batter, Williamson replaced Mark Chapman in the squad that toured India, while spinners Ajaz Patel and Ish Sodhi made way for more pace bowlers to exploit home pitches.
All-rounders Glenn Phillips and Mitch Santner will offer spin, though Santner has been picked for only the second and third Tests in Wellington (December 6) and Hamilton (December 14).
New Zealand's sweep of India revived their WTC campaign - Â they now lie fourth in the standings behind defending champions Australia, India and Sri Lanka.
The top two teams will contest the WTC final at Lord's in June, 2025.
"It's obviously a big series for the side in terms of the World Test Championship and to also now be farewelling someone like Tim Southee, only raises it up further," said New Zealand selector Sam Wells.
"I am sure the team and the public will want to give Tim a fitting send-off."
with Reuters
