The school said Monday that the ceremony will take place on Jan. 18 during halftime of a game against Oregon State.
Thompson played three seasons for Washington State before going on to star for the Warriors in the NBA.
He drained a school record 242 3-pointers from 2009 to 2011 and averaged 17.9 points per game.
Thompson was the 11th pick of the 2011 draft, becoming just the second Cougars player chosen in the first round
The only other Washington State basketball player to have his jersey retired is Steve Puidokas, who wore No. 55.