Heynckes has been heavily linked with the vacancy at his former club Real Madrid after the departure of Jose Mourinho to Chelsea, but has opted to take a break to spend more time with his family.
The 68-year-old, who led Bayern to the Bundesliga, Champions League and DFB-Pokal titles this season, said at a press conference: "I will not seek a new job after July 1, either at home or abroad.
"I told my wife last summer I will fulfil my contract at Bayern and then not continue.
"Other clubs were interested in signing me after this season - rich clubs where money does not matter.
"Such clubs have never interested me."
He admitted age was a factor in his decision, adding: "I've noticed, especially in the last few weeks, that I have reached an age at which regeneration takes longer.
"I felt that I went to the limit, it was incredibly stressful."
Bayern executive chairman Karl-Heinz Rummenigge, who helped install former Barcelona boss Pep Guardiola as Heynckes' successor for next season, suggested the door will always be open for a man who has coached, among others, Real Madrid, Benfica and Schalke, in a long career.
Rummenigge said: "If sometime, after his holiday has passed and his spirit has returned, he can call myself and (supervisory board chairman) Uli (Hoeness).
"The doors at Bayern are still wide open."
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