The Dutch coach, who is currently in charge of Anzhi Makhachkala, will call time on his career, regardless of whether the Dagestan outfit make it to the Champions League
The 66-year-old took charge of the Russian outfit in February, agreeing an 18-month contract, and has decided to retire when his current deal expires.
"I wasn't planning to stay at Anzhi for a longer period," the Dutchman told NOS.
"Even if we make it to the Champions League, I think I will quit after this season. I'm 66, and you can say that it's enough now.
"You have to watch yourself. You don't want people to say: 'There's that guy again'."
Hiddink's coaching career began at PSV in 1987. Since then, he has taken charge of Netherlands, Valencia, Real Madrid, Russia, Chelsea and Turkey amongst others.