Layne announced his decision in a tweet Friday, thanking coach Mark Dantonio, the Spartans' coaching staff and "all who have supported me on my journey."
"It has been a privilege to develop as a player under their counsel, but more importantly to grow into a man," Layne wrote. "I promise to always represent our university with professionalism and class. Of course, I wouldn't be here without the help of my teammates. So thank you."
Layne did not say whether he would play in the Spartans' bowl game. Michigan State faces Oregon in the Redbox Bowl on Dec. 31.
Initially recruited to Michigan State as a wide receiver, Layne made the transition to cornerback during his freshman year in 2016. He picked up one interception in each of his three seasons and has totaled 130 tackles in 34 career games.
He also has lined up at wide receiver this year and got his only collegiate reception, an 11-yard catch against Purdue.