"After thinking about it for the last few months, I've decided to return to play for the Ducks," Selanne said in a statement released by the team. "I'm excited about the summer additions the team has made. I know this team can win."
The team said Monday that the 40-year-old right winger has signed a one-year deal. According to team sources, Selanne's contract is worth $3.25 million plus incentives.
Selanne had 27 goals, 21 assists and 16 penalty minutes in 54 games last season. He became the 18th player in NHL history to score 600 goals on March 21.
Ducks general manager Bob Murray says the team is thrilled to have Selanne back for his 12th season in Anaheim.
Selanne is the Ducks' franchise leader in goals, assists, points, power play goals, power play points, game-winning goals, plus/minus rating and games played. He helped the team win its first Stanley Cup in 2007.
He played for Finland at the Winter Olympics and won a bronze medal.
Scott Burnside and Pierre LeBrun of ESPN.com contributed to this report. Information from The Associated Press contributed to this report.