"I wanted to announce to you all that it's my last year at Paris Saint-Germain. I will not extend and the adventure will come to an end in a few weeks," Mbappe said in a video posted on social media.
"I will play my last game at the Parc des Princes on Sunday."
PSG have already secured the Ligue 1 title, their 10th in the last 12 seasons, and will pick up the trophy after Sunday's game against Toulouse, which will be their last of the campaign on home turf.
Luis Enrique's side were eliminated from the Champions League this week by Borussia Dortmund in the semi-finals, a 1-0 loss in Tuesday's second leg at home sealing a surprise 2-0 aggregate defeat.
It means Mbappe will not get the send-off he had hoped for in the Champions League final at Wembley on June 1 and will end his seven-year spell at PSG without ever having won Europe's elite club competition.
Mbappe informed PSG privately in February of his intention to depart when his contract expires at the end of the current campaign.
The 25-year-old has never said as much publicly, though, far less confirmed where he will be going next, but it appears certain that he is bound for Real Madrid.
"It's a lot of emotions, many years where I had the chance and the great honour to be a member of the biggest French club, one of the best in the world," said Mbappe.
"It allowed me to arrive here, to have my first experience in a club with a lot of pressure, to grow as a player of course, by being alongside some of the best in history, some of the greatest champions," he added.
"It's hard and I never thought it would be this difficult to announce that... but I think I needed this, a new challenge, after seven years."
Mbappe did not find the net in either leg of the Dortmund tie but has scored 43 goals in all competitions this season, with 26 of those coming in Ligue 1.
He will still hope to add to his club-record tally of 255 goals for PSG and win another medal in the French Cup final -- Mbappe has so far won six Ligue 1 titles, three French Cups and the now defunct League Cup twice in his seven years at his hometown team.
After Sunday's game, PSG will complete their league campaign with away matches at Nice and at relegation-threatened Metz, before Mbappe wraps up his career with the club in that Cup final in Lille.
