Jackson has been fighting for a chance to go out on her terms after a constant battle with knee injuries crippled the final years of her playing days.

But the WNBL, WNBA and European champion will step away from basketball as on of Australia's greatest female athletes and with a record unmatched by players who have gone before her.

It's understood Jackson met with her Australian Opals teammates on Wednesday night to inform them of her decision before a formal announcement at the AIS on Thursday.

It's fitting Jackson will be back at the AIS to say goodbye almost 20 years after she arrived in Canberra as a teenage prodigy in the institute's basketball program.

Fairfax Media revealed in December that Jackson had played her last game for the Canberra Capitals after being released from her landmark contract.

Jackson conceded she would need "an absolute miracle" to regain her fitness in time to make the Opals squad for the Olympics.

But her body has taken a beating in a world-class career that has seen her win titles around the globe and lead the Opals to three silver medals and a bronze in her four Olympic appearances.

It signals the end of an era for the Opals after relying on Jackson to take the reins since she made her debut when she was just 16 years old.

The Opals are in Canberra for their first camp in the build-up to the Rio Olympics. They will be preparing for their first Games without Jackson since the Atlanta Olympics in 1996.

Jackson has been working furiously at the AIS in her bid to recover from more knee surgery.

The 34-year-old almost retired when she was struck down by an infection in her knee in November last year, admitting walking away from basketball crossed her mind when she was hospitalised.

She wanted to be able to have a good quality of life at the end of her basketball career, and worked with the AIS and Basketball Australia to fight for her right to retire on her terms.

She will have arthritis in her knee for the rest of her life. Jackson said in February she wanted to make sure her injuries didn't ruin her hopes of playing one on one with her future children.

"Absolutely I want to have a family ... If I don't do some work to get my knee strong, regardless of what happens with the Olympics, I'm not sure if I'd be able to play one on one with my kids in the backyard," Jackson said.

"That's something I experienced in my childhood and I loved. I definitely want to be able to share with my children [in the future]. Whatever sport they might choose, I want to be a part of it and be active."

Australia's two best female basketballers – Jackson and Penny Taylor – teamed up to lead the AIS to a WNBL championship in the 1998-99 season, before Jackson joined the Capitals.

"The first time Lauren and I played against each other was when we were 12. That's 22 years ago – a pretty long time," Taylor said.

"The experience she's had and what she means to women's basketball, that brings so much to everyone and everyone who's watched her play throughout her career. We've all had our fingers crossed and hoping for the best.

"We are limited by our bodies and sometimes you don't get the choice. I learnt that by missing out on playing at the London [Olympics]."