Alfredsson most recently played with the Detroit Red Wings, but has not played in the 2014-15 season. He has suffered increasingly in recent years from bulging discs in his back, TSN's Darren Dreger notes.
The Sweden native left Ottawa in July 2013 after he could not reach a contract agreement with his longtime team. He then signed a one-year, $5.5 million contract with Detroit, where he tallied 18 goals and 31 assists in 2013-14.
Alfredsson is currently in talks with Ottawa about how to structure next week's announcement.
The 41-year-old has scored 444 goals and logged 713 assists across 1,246 career games.
- Will Green