Alex Rodriguez has confirmed he will retire after seeing out the final year of his New York Yankees contract next season.

Rodriguez, 40, has 687 home runs, 3,070 hits and 2,055 RBIs in his career and could possibly pass Babe Ruth for third all-time on the career home runs list (714) next season. 

"I won't play after next year," Rodriguez told ESPN. "I've really enjoyed my time. For me, it is time for me to go home and be dad."

After returning from a year-long suspension for doping offences, he had a resurgence in 2015 with 33 home runs and 83 RBIs.

Rodriguez, who signed a 10-year, $275 million contract with the Yankees, will make $21 million in both 2016 and 2017 to bring his career earnings to $420 million. He will become the first athlete to earn more than $400 million in on-field salary.