Lipponen, 70, led the government between 1995 and 2003.
“I thank the party council and those who ... gave me their support,” Lipponen said in a speech.
The presidency, a role currently held by Tarja Halonen, lacks the political powers of the prime minister who heads the government and represents Finland in the European Union.
But it is still an important post, carrying foreign affairs responsibilities and the role of military commander-in-chief.
The election is due on Jan. 22.
Lipponen’s main rivals are expected to be the National Coalition party’s Sauli Niinisto who is leading in opinion polls, as well as True Finns party leader Timo Soini, Paavo Vayrynen, Pekka Haavisto from the Greens and the Swedish People’s party’s Eva Biaudet.
Most of the parties will officially appoint their candidates later this month.
