The Tribune report said Selig, 75, told a group of owners about his decision at an owners meeting in Chicago earlier this month when he was approached about staying on past Dec. 31, 2012.
Selig, the former owner of the Milwaukee Brewers, said July 30 on his 75th birthday that he would retire when his contract expired.
Several media reports this year said he planned to pursue other interests, including writing a book and/or teaching history, his major in college.
"I want to do some teaching," Selig admitted in a recent MLB.com interview. "I did a little this past winter and I have some wonderful offers. God willing, on Dec. 31, 2012, you'll be saying goodbye to me."
Selig became acting commissioner in September 1992 after Fay Vincent resigned.