Waterfield, a silver medallist at Athens 2004, has revealed that synchro parner Tom Daley helped persuade him to keep Rio 2016 in his sights.
The pair finished an agonising fourth ar London 2012, but 31 year-old Waterfield believes there is room for improvement.
He said: "My aim was to get to the Commonwelaths and maybe retire after that but now I'm thinking about Rio. I'll review it after the Commonwealths, if I feel good I'll set my sights on Rio.
"Tom and I have got more to give, we won the World Series and haven't been diving together long."