Chapman, who is an unrestricted free agent after playing 14 seasons, has indicated he will look to play on in 2014 with another club, and he and manager Liam Pickering will explore those opportunities.
"The history of Geelong Football Club will not be able to be written without a huge chapter focusing on Chappy's contribution," Geelong coach Chris Scott said.
"Paul's record speaks for itself, but it doesn't show the fierce competitor and the determination to succeed that he has displayed every day.
"His contribution is greater than the numbers and awards. You only have to watch the intensity he brings to training, to meetings and to games to know how much football means to him. I'm sure his team mates will never forget his contribution to the success they enjoyed together.
"Chappy will go down as a legend of this club. He has decided that he would like to extend his career and we wish him well. No doubt he will bring his passion whenever he plays against us, as he should. Regardless of where he goes from he, he will always be remembered as a Geelong icon.
"It has been a privilege to coach Chappy and I look forward to catching up with him in the years to come."
Chapman played 251 games and kicked 336 goals since debuting against Collingwood in 2000.
He ranks as one of the most decorated players in Geelong history. A triple premiership player, Chapman claimed the Norm Smith medal in 2009 aft booting three goals in the thrilling grand final win over St Kilda, including the game winner deep into time on.
Chapman was runner up in the Norm Smith in the drought breaking 2007 premiership, when he kicked four goals in the record 119 point win over Port Adelaide.
The Carji Greeves medalist as Geelong's best and fairest in 2006, Chapman was twice named to the All Australian team. He polled 82 Brownlow votes in his career.
Chapman ranks 11th on Geelong's all time games list and played in 21 finals. He played in 166 winning games and kicked multiple goals in 96 games.
