Several thousand people are expected to attend the free, ticketed event at Chicago's McCormick Place, a lakefront convention centre where Mr Obama will deliver his speech.

He has been working with White House speechwriters on the piece since mid-December which senior advisors say is "not a victory lap speech", but will offer thoughts on where the US goes next.

Mr Obama says he will also thank supporters and mark his achievements. His wife Michelle Obama and Vice President Joe Biden will also attend.

President Obama and his speech writing team are expected to work on the speech until early Tuesday morning, according to the White House. The speech is not expected to be a list of accomplishments, but a talk about the nation's immediate future following a divisive election.

Obama' speechwriter Cody Keenan recently gave some insight about the farewell speech. Keenan, a Lakeview native and Northwestern University graduate, has written thousands of speeches for Obama and helping with the farewell address.

"He is always very involved in the process," Keenan said. "His edits are meticulous. If he doesn't like something he will tell you why. … He doesn't go for the pithy soundbite he doesn't go for the bumper sticker line, something put in posterity for a larger argument."