Wiggins has openly admitted that he has no chance of beating Sky team-mate Chris Froome at any of the Grand Tours, and since he does not want to switch teams he will ride one more season before going back to track cycling.
The 33-year-old was unable to defend his 2012 Tour de France title due to injury, with compatriot Froome winning a second title for the British team in his absence.
Wiggins had previously indicated he may never compete in the Tour again, but he said on Monday that he would like to ride it one more time, if selected, and was willing to play second fiddle to Froome.
"I don't mind admitting that Chris is probably a better Grand Tour rider than me," Wiggins told The Times.
"He is a much better climber, he can time-trial well. He has age on his side, he has no kids, that's fine.
"If Chris wants to, he could potentially win five Tours now. So if I want to win another Tour, I'd probably have to leave the team.
"I love this team. This is my home, I'm not going to go, 'I want to be the leader still, so I'm off'."
Wiggins confirmed that he will retire from road racing after one more season before returning to the velodrome, with the goal of adding to his gold medal haul at the 2016 Olympic Games in Rio de Janeiro.
"I'm going to continue to the next Olympics and try for a fifth gold," he said..
"That's the plan. Having lost weight and muscle the last few years I wouldn't be able to walk back into that team pursuit squad, so I'm not taking anything for granted, but I am working towards that.
"It would be nice to finish the career with another Olympic gold."
Wiggins won six Olympic track medals, including three golds, before switching to the road after the 2008 Olympics.
He won an individual time-trial gold at the London Olympics last year, after his Tour de France success.
Despite that, Sky had thrown its backing for team leader behind 28-year-old Froome, even before Wiggins had to withdraw from Tour contention with a knee injury.
The pair have had a fraught relationship, with Froome reportedly saying recently Wiggins had not congratulated him on his Tour victory.
Wiggins said there was a simple reason for that.
"For a start, this is a pathetic excuse - and it's not an excuse - but I don't have his phone number.
"The second thing is, a lot of stuff happened with me and him and his girlfriend and it was left in a very bad way and rather than me send him some naff (worthless) little text message, I would rather wait till I see him, genuinely put my hand out and say 'you know what, that was a good ride'."
"That is more genuine than one text message that might get lost in hundreds of others.
"Obviously once the press got hold of it, it got chewed up a bit and then it would have been really naff to have sent one.
"But I will see his at the World Championships where I will be riding to support him. So this was not me saying, 'I'll never ride for him again'."