The former Premier League star has been widely linked with a return to England, with Aston Villa, Brighton and Newcastle said to have offered him possible return.
However, BeIN Sports correspondent Roberto Rojas has now confirmed that the 35-year-old will sign a deal with Primera Division champions Olimpia.
11. Demba Ba - 43 goals (Senegal)
10. Frédéric Kanouté - 43 goals (Mali)
9. Riyad Mahrez - 49 goals (Algeria)
8. Efan Ekoku - 53 goals (Nigeria)
7. Nwankwo Kanu - 54 goals (Nigeria)
6. Yaya Toure - 62 goals (Ivory Coast)
5. Mohamed Salah - 62 goals (Egypt)
4. Sadio Mane - 74 goals (Senegal)
3. Yakubu Aiyegbeni - 95 goals (Nigeria)
2. Emmanuel Adebayor - 97 goals (Togo)
1. Didier Drogba - 104 goals (Ivory Coast)