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The 40-year-old will come back for one game only, having quit football on October 11, to help out former club Rushden & Diamonds.
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Eighth-tier AFC Rushden & Diamonds, the phoenix club following Rushden & Diamonds demise in 2011, announced the signing of Sharp on Sunday.
The Northern Premier League Division One Midlands side reached the first round proper of the FA Cup for the first time.
They won five qualifying rounds to reach the first round and will take on Burton.
In a statement, the club said: "After 21 years away, AFC Rushden & Diamonds are excited to announce that Billy Sharp becomes a Diamond once again.
"Billy scored the first of 299 goals for Rushden & Diamonds back in 2005.
"The man who put the ball in the Cobblers' net, has 299 career goals spanning over 22 years.
"Featuring for RDFC, Sheffield United Doncaster Rovers, Southampton, & Scunthorpe to name a few!
"Billy comes in to help the club with James Clifton being suspended and we can’t wait to see him pull on the shirt one final time as we go to Burton Albion in the FA Cup 1st Round Proper for the first time ever in AFC Rushden & Diamonds history."
Sharp scored 299 senior goals in an extensive playing career that saw him feature from League Two through to the Premier League.
This included three spells at Sheffield United, as well as successful stints at Scunthorpe, Doncaster and Nottingham Forest.
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His first taste of Premier League football came with Southampton in the 2012/13 season, before returning six years later with the Blades.
Sharp is also the Championship's record goalscorer having hit 130 in the second tier.
Speaking to talkSPORT, Sharp was asked if it was a difficult decision to make, and replied: "No. I've been planning it, I had plenty of time to think about it.
"I'm just really satisfied that I got a choice to retire and it's not been taken away from me by injury or something else. It's a big wrench to make that decision.
"I know I could have played on and scored goals, but I thought the time was right. I've just had a new addition to the family and time away with the family, which I've not really been able to have.
"It's always been football. Football has given me a lot of highs, a lot of great memories, and it was there for me when I lost a child. I'll be forever grateful and in debt to that.
"I've had a good career, scored a lot of goals, and I've got so many memories to take away from it."
Total: 814 games, 299 goals, 78 assists
Sharp had also joined Baller League team N5, led by former Arsenal and Germany goalkeeper Jens Lehmann.
The striker has also completed his coaching badges and may have one eye on management in the future.