He hopes to play in next week's Players' Championship at Sawgrass. The 43 year old has played the tournament 19 times.
Woods is an eight-time victor at Bay Hill.
Tiger Woods watches his shot from the seventh tee during the final round of the WGC - Mexico Championship golf tournament at Club de Golf Chapultepec.
Woods added that his lower back is fine, and he's not concerned about the injury long term. Typically, he does not play the week before the Masters, which means that the first three are the most likely options and one of those would probably be out because he doesn't typically play three tournaments in succession.
Woods' first appearance at Bay Hill since 2013 generated record crowds and a massive spike in TV ratings.
His par putt lipped out, however, and trickled two feet away from the cup. Woods finished tied for second at the Valspar past year, and it seems as if he would come back if he could.
It is shocking that he's missing Arnold Palmer's tournament at Bay Hill (of all places), but I don't necessarily think there are any alarms to sound.
Woods declined to speak to the media afterwards, something he has done only a handful of times over his career. Two weeks ago, he was T-3 at the WGC-Mexico.
Last years champion Rory McIlory is back to defend his title, as he held off Bryson DeChambeau by three strokes last year to grab the victory.
But injuries and age continue to take a toll on the former No. 1.