Explaining his decision, the music icon said: 'Performing live fuels me and I’m ecstatic and humbled to continue to play to audiences across the globe.
'I plan to bring the passion and creativity that has entertained my fans for decades to my final tour.
'After the tour finishes, I’m very much looking forward to closing off that chapter of my life by saying farewell to life on the road. I need to dedicate more time to raising my children.'
The Farewell Yellow Brick Road tour kicks off in the U.S. on 8 September 2018 and will travel across Europe, Asia, Australasia and South America, before returning to Europe and the UK in late 2020 and finishing in North America in 2021.
The new stage production concludes half a century on the road for the pop culture icon, and will take his fans on a musical and visual journey spanning hits from his 50-year career.
The tour was announced via a live virtual reality stream on YouTube using its VR180 technology – allowing fans to revisit some of the defining moments on Elton's path to superstardom.
Vivien Lewit, Global Head of Artist Services at YouTube said: 'Elton John is always up for doing things differently, using technology to push the boundaries of storytelling and reach fans in new ways.
'His final farewell tour announcement takes experimentation to the next level – live streaming in VR.
'We're honoured to deepen our relationship by supporting the exclusive live stream and 'behind the scenes' videos in VR for this special moment in pop music history.'
Elton’s career highlights include 38 gold and 31 platinum and multi-platinum albums, more than 300m record sales worldwide and the biggest selling single of all time, Candle In The Wind 1997.
To date, he has delivered more than 4,000 performances in more than 80 countries since his first tour in 1970.
His many awards and honors include five Grammys, a Tony, an Oscar, an induction into the Rock and Roll Hall of Fame and the Songwriters Hall of Fame and a knighthood from HM Queen Elizabeth II for 'services to music and charitable services.'
For more information about the tour and to purchase tickets, visit www.eltonjohn.com.