The 2-gigawatt (GW) plant has been running for more than 50 years, but was designed to operate for 30 when it as built.
"Today's decision reflects the challenging market conditions over the last few years and the context of the drive to decarbonise electricity generation," it said in a statement.
EDF Energy said it will support its 158 workers at the Cottam plant through the closure process. In 2017, it helped 19 people to move to alternative roles within the company and a further 22 will be moving into other roles in the coming months.
EDF Energy operates the Cottam and the 2-GW West Burton A coal power stations in north Nottinghamshire.
West Burton A has power capacity agreements in place for three of its four units until the end of Sept. 2021, which pay energy suppliers to ensure there is enough electricity generation capacity to meet peak demand.
"EDF Energy is committed to honouring these agreements and will review the future of that station beyond that date," the company said.
(Reporting by Nina Chestney; Editing by Jan Harvey and David Evans)