The 38-year-old utility player and the Angels announced their plan Sunday.
Figgins spent eight of his 12 major league seasons with the Angels, debuting on the franchise's only World Series championship team in 2002.
The speedy Figgins became an Angels regular in 2004. He set a franchise record with 53 hits in June 2007, including a major league record-tying six hits in a nine-inning game.
Figgins played every infield spot but first base for the Angels, along with all three outfield positions.
He went on to play three disappointing seasons in Seattle, which signed him to a $36 million deal. Figgins sat out 2013 before playing 38 games with the Dodgers in 2014.