"This is a bittersweet day for me," Biden said during an appearance with the justice at the White House, noting that he has known Breyer since the 1970s.
"I'm here today to express a nation's gratitude to Justice Stephen Breyer for his remarkable career in public service," Biden added.
Breyer formally announced his retirement in a letter to Biden made public on Thursday, saying he plans to depart at the conclusion of the Supreme Court's current term, typically at the end of June, assuming his successor has been confirmed by the Senate.
Lawmakers disclosed his retirement on Wednesday.
"It's my intention to announce my decision by the end of February. I have made no decision," Biden said.
"That person will be the first black woman ever nominated to the Supreme Court. It's long overdue in my opinion," Biden added.
Breyer's retirement after 27 years gives Biden his first chance to fill a vacancy on the nine-member court but will not change its ideological balance.
The court's 6-3 conservative majority has shown an increasing willingness to reshape the law on contentious issues including abortion and gun rights.
Biden's Republican predecessor Donald Trump appointed three justices during his single four-year term in office.
"I enormously appreciate the privilege of serving as part of the federal judicial system," Breyer wrote in the letter.
"Throughout, I have been aware of the great honour of participating as a judge in the effort to maintain our constitution and the rule of law," Breyer added.
Democrats, who hold a razor-thin Senate majority, aim to quickly confirm Biden's pick in a time frame similar to the one-month process that the chamber's top Republican, Mitch McConnell, used in 2020 to confirm Trump's third appointee, Amy Coney Barrett, according to a source familiar with planning.
Republicans are seeking to regain control of the Senate in the November 8 congressional elections, underscoring the need for speed from the perspective of Biden's party.
Potential Biden nominees include Ketanji Brown Jackson, a former Breyer law clerk who was confirmed by the Senate last June to serve on an influential US appellate court, and Leondra Kruger , who serves on the California Supreme Court.
Another potential contender is Michelle Childs, a federal district court judge in South Carolina who Biden already has nominated to the US appeals court in Washington DC.
Breyer, the Supreme Court's oldest member, was appointed to his lifetime post by Democratic president Bill Clinton.
