The 41-year-old Sweden international's contract expires at the end of June and will not be renewed following a season beset by injuries.
Ibrahimovic has played only four matches in Serie A this season, getting a total of 144 minutes on the field, but became the oldest goalscorer in the league's history when he scored his only goal of the season by converting a penalty in a 3-1 loss at Udinese in March.
Ibrahimovic arrived in Milan for his second spell with the club in early 2020, having won the Scudetto with them in 2011, and helped them to win the title again last season.
Manager Stefano Pioli said Ibrahimovic would not be available for Sunday's match against Hellas Verona at the San Siro but the club said the forward would be honoured after the game.
"AC Milan will bid farewell to Zlatan Ibrahimovic with a brief ceremony involving all the crowd," a club spokesperson said.
"AC Milan would like to thank Zlatan for the magnificent years we spent together."