Chelsea great Lampard signed for the new American franchise in 2014, but initially spent a season with parent club Manchester City in the Premier League.
Having arrived in the at Yankee Stadium midway through the 2015 MLS season, 38-year-old Lampard has gone on to score 15 goals in 31 appearances.
Lampard teased on Instagram that he would be making an announcement regarding the "next stage" of his career soon, while also saying: "As my time at NYCFC comes to an end, I would like to thank so many people for the kindness and support that they have shown me over the last two years.
"My team-mates have been a pleasure to play alongside. The amazing fans have given me incredible support and backing.
"I have very much enjoyed my time, and I am very grateful to have had the opportunity to play for such a great club and in such an incredible city."
NYCFC head coach Patrick Vieira added: "Everybody talks about Frank's goal-scoring record from midfield but I can tell you after a year of working with him, he brings so much more to a team than just goals.
"What Frank has brought to the locker room is something just as important – his experience, his elite mentality and his mentorship for the younger members of our squad have helped us greatly this year.
"It is clear that Frank has embraced playing in this league and for this club. I am grateful for his service in my first year here and I wish him the very best in whatever he chooses to do next."
New York City were beaten by Toronto in this season's Eastern Conference semi-finals.
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