Simon & Schuster plans to publish in time for Father's Day in 2007. Financial terms were not disclosed.
"I'm writing this book because I flunked retirement," Iacocca, who stepped down from Chrysler in 1992, said in a statement issued Wednesday by his publisher.
"There is too much happening in the world and too much to be done to sit on the sidelines. I hope that with this book I can engage others to take action to address the myriad challenges we face at home and abroad."
According to Simon & Schuster, the 81-year-old Iacocca will offer a "no-nonsense perspective" on "government and business, what happened to the American automotive industry, the relationship between America and its allies, the challenge to America from China and India, the future for American workers and their families."
Iacocca's memoir, "Iacocca," was published in 1984 and sold more than 6 million copies. His 1988 book, "Talking Straight," was also a best seller.