The Jamaican sprinter said he wanted to retire following the Rio Olympics in 2016, but he was convinced to keep running for another year.
However, he said he will focus purely on racing the 100 metres after the Olympics.
In an interview with the Daily Mail, Bolt said: "That was the initial plan [to sign off after Rio]. But my sponsor has asked me to go on for another year; to 2017 and London.
"But I'll be doing one event, the 100. I've already discussed it with my coach. I can concentrate on that, and on retiring on a winning note."
The 28-year-old added: "If everything goes well this season… in my life anything is possible. If I can get myself in good shape, it should be wonderful this season. I live for competition. I thrive on competition. I live to compete against the best."