Bouteflika, who suffered a stroke last year, made the announcement Saturday, the Los Angeles Times reported.
Prime Minister Abdelmalek Sellal confirmed Bouteflika's candidacy and denied the president's health is an issue.
"President Bouteflika is healthy and he has the required intellectual capacities and vision to fulfill his duties," Sellal said Saturday at a news conference at the African Conference on Green Economy in the western Algerian city of Oran.
Sellal said Bouteflika's nomination comes "at the insistence of the people and after some deep reflection."
Bouteflika first came to office in 1999. After being re-elected in 2004, he created a constitutional amendment that allowed him to run for re-election in 2009 and 2014.
Since suffering the stroke, Bouteflika has remained out of public view, but has made a few appearances with visiting foreign diplomats.
The Algerian presidential election is scheduled for April 17.