The 17-time Grand Slam champion said he needs "more extensive rehabilitation" if he wants to prolong his career.
Federer wrote on his Facebook page Tuesday that he needs "more extensive rehabilitation following my knee surgery earlier this year."
"The doctors advised that if I want to play on the ATP World Tour injury free for another few years, as I intend to do, I must give both my knee and body the proper time to fully recover," Federer said.
The owner of a record 17 Grand Slams titles turns 35 on Aug. 8, so the reference to "another few years" might give his fans increased hope of seeing Federer continue to wield a racket for quite some time.
"I am as motivated as ever and plan to put all my energy towards coming back strong, healthy and in shape to play attacking tennis in 2017," he added.
Federer won doubles gold at Beijing in 2008, but has never won an Olympic singles title and lost to Britain's Andy Murray in the final at London 2012.
Federer twice required treatment during a five-set semi-final defeat by Canada's Milos Raonic at Wimbledon this month, but found a "silver lining" in his injury-troubled year.
"This experience has made me realise how lucky I have been throughout my career with very few injuries," he said.
"The doctors advised that if I want to play on the ATP World Tour injury free for another few years, as I intend to do, I must give both my knee and body the proper time to fully recover."