The move was first announced by President Michelle Bachelet on Monday at the opening of the 60th International Whaling Commission (IWC) meeting in Chile.
Bachelet also endorsed making Chile's coastal waters a sanctuary for 43 whale species. The proposal is still to be approved by Congress.
There are currently around 2,200 blue whales, 100 times less than at the start of the 19th century.
A Chilean whaling moratorium was previously set to expire in 2025.
The IWC announced a moratorium on whaling in 1986. However, Japan continues to hunt whales under a provision that allows for research. Iceland and Norway ignored the ban, and continue whaling.
Whale hunting is also officially permitted for the native Eskimo peoples of Russia, Greenland and Alaska.