The seven times world champion stated after losing 13-4 to Mark Selby in the second round of the Betfred.com World Championship that he would make a decision about his future over the next few weeks.
But that decision has come quicker than expected - and was influened by Stuart Bingham's last 16 defeat to Ding Junhui, which ensured that legend Hendry will keep his top 16 place, at least until the first seedings cut-off point of the 2011/12 campaign.
"I still love playing the game. I want the chance to come back here," said the 42-year-old, who is back in Sheffield as a pundit and commentator for BBC. "I'm going to play all the tournaments. There's no point being half-hearted.
"I don't put in the same amout of time as I did in the 1990s when I was dominating," he said. "Your life is different when you have a family and it can be pretty boring practising the same shot for six hours a day.
"I am going to start having more competitive practice sessions with other players rather than playing on my own. I feel that could help me compete more in matches.
"I still feel I have something to give. I have got the game but I need the belief and hopefully I can get that back by practising more with other players, but certainly staying in the top 16 was a big incentive in my decision."
Article courtesy of World Snooker
I am really happy that Stephen has decided to stay competiting on the main tour for at least the next season. Obviously he decision was influenced by the fact that Stuart Bingham wasn't able to defeat Ding Junhui and take his spot in the top 16, but the way it sounded after his match (and the way it was covered by the BBC and the general media) is that he already had retired and I am glad he is giving it at least one more shot.