The tournament, which is played on Palmer's Bay Hill layout and features an elite field, will take place March 18-21.
The 74-year-old, who lists 60 PGA Tour wins and seven major championships among his career accomplishments, has competed in every Invitational since the tournament began its stay at Bay Hill in 1979.
Palmer has hinted on multiple occasions over the past few years that his days on the PGA Tour were coming to an end. However, the ever-popular player will give it another go later this month.
Besides his four Masters titles, Palmer captured the 1960 U.S. Open at Cherry Hills and back-to-back British Opens, at Royal Birkdale in 1961 and at Troon in '62.