The 7-foot Indiana native made the announcement at halftime of Saturday's spring football game.
Hammons was considering a move to the NBA. He also contemplated leaving after his sophomore season, but wound up having the most complete season of his career. He led the Boilermakers in scoring and rebounding, averaging 11.6 points and 6.6 rebounds.
He also shot a team-best 54 percent from the field, helping Purdue to a 21-13 record.
He also owns three Big Ten blocks titles and joins Ohio State's Herb Williams and Purdue's Joe Barry Carroll as the only players in league history to reach 1,000 points, 600 rebounds and 250 blocks as juniors.