It will be the second jersey retired in Heat history: Alonzo Mourning's No. 33 went to the rafters last season.
Heat president Pat Riley said Hardaway is part of the "taproot and foundation for what we hope to be a long tradition of success here in Miami."
Hardaway played 13 NBA seasons, nearly six of those with the Heat. He was a five-time All-Star and also played for Golden State, Dallas, Denver and Indiana during a career where he averaged 17.7 points and 8.2 assists per game.