Qatari Bin Hammam, 61, the president of the Asian Football Confederation (AFC) will stand against Blatter when FIFA's congress votes in a meeting on June 1 in Zurich, Switzerland.
Blatter, 75, has served as FIFA president since 1998.
"Blatter is no longer in a position to defend FIFA's reputation," Bin Hammam told the Sueddeutsche Zeitung.
"In the eyes of the public and media, it (FIFA) is corrupt.
"Blatter is spent, think of the goal-line technology issue.
"There is no new approach from FIFA, I see no new creativity from Blatter anymore."
Blatter's image has taken a knock recently after he refused to look into goal-line technology despite a series of refereeing errors at the World Cup.
He has now said he expects goal-line technology will be in place by the next World Cup to be held in Brazil in 2014.
The awarding of Russia as hosts of the 2018 World Cup, with Qatar to host the 2022 event, has seen FIFA come in for stinging criticism amidst accusations of corruption.
"Football has developed in such a way that no president can still bring something new after eight years in office," added Bin Hamman, who has said he will stay on only two terms if elected.
"For the good of football, nobody should stay on 15 or 20 years as the head of FIFA."