The 37-year-old Swiss has not played on clay since the 2016 Italian Open, and was beaten by Stan Wawrinka in his 2015 appearance at the French Open.
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Federer was knocked out of this year's Australian Open by Greek player Stefanos Tsitsipas, and after the match explained his decision.
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"I'm in a phase where I want to have fun," Federer said.
"It's a bit of a desire. I don't feel it is necessary to have a big break again."
Federer explained that he left Australia with massive regrets over his performance.
He said: "I have massive regrets tonight. I felt like I have to win the second set. I don’t care how I do it, but I have to do it. (It) cost me the game tonight.
"I lost to a better player who was playing very well. He hung in there, gave himself chances at some point, stayed calm. It’s not always easy, especially for younger guys. Credit to him for taking care of that.”
Federer had taken the decision to skip the last two clay seasons after negotiating several injuries in his thirties.
His struggle for fitness saw him withdraw from 2016's Roland Garros with a back injury. In 2017 he announced he would only play in the French Open, but ultimately skipped the competition to feature in Wimbledon, which he won.
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