The 30-year-old, who won road race gold at the Rio Olympics in 2016, will become a coach with the Boels-Dolmans team after ending her professional career.
The 2020 Tokyo Olympics have been pushed back a year because of the COVID-19 pandemic.
"The Olympic Games in Tokyo are, of course, a great challenge and an important reason for continuing another year," Van der Breggen said in a statement.
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"I also want to end my career with a great, full season. Especially after this year, which was largely lost due to the corona pandemic, I am enormously motivated to continue for one more year.
I've been thinking about a role as team leader/coach for some time. I was quickly excited about the team's proposal. In 2021, I want to get the best out of myself on my bike for one more season. After that, I will focus on this new job.
Van der Breggen, who secured the rainbow jersey at the world championships in Innsbruck two years after her victory in Rio, has signed a three-year contract to work as a sports director/coach with Boels-Dolmans.
Her compatriot Chantal Blaak, who won the women's road race at the 2017 world championships, will continue to race professionally until 2022 before taking up a coaching role with Boels-Dolmans.
"In women's cycling, it is not common for cyclists to make this step into coaching after their active career," Blaak said. "It is a compliment for me to be seen as one of the mainstays of this team."
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