Rocky Elsom will remain in Australia until the end of 2013 after agreeing a new contract with the ARU and the NSW Waratahs on Tuesday.
Elsom, sensationally axed as Wallabies skipper last month, will rejoin the Waratahs for the next two Super Rugby seasons after opting to leave the Brumbies and will be available for the 2013 British and Irish Lions tour.
The 28-year-old debuted for the Wallabies in 2005 against Samoa and is the 20th player to re-commit to Australian rugby this year.
The powerful blindside flanker has accumulated 70 Test caps, 24 as Wallabies captain, and is now the fourth most capped loose forward in Wallabies history.
New Waratahs coach Michael Foley said of Elsom's return: "When you're recruiting you're always looking for the best players to fill vacancies in your squad and when Rocky came off contract we knew he was the best person to fill that back row place we had available.
"Rocky's a very special player, he has a great skill set and when he's at his best there's no doubt that he's one of the leading backrowers in the world.
"The fact that he has played at a number of teams now and decided to return to NSW shows he has a lot of belief in where this squad can go in the next couple of years.
"Most of our starting players have been involved in the national program so there won't be any problem with Rocky slotting straight back into the squad and as someone who has captained Australia we'll be looking to him to bring those leadership skills to the team."
Having played every minute of the Wallabies 15 Tests in 2010, Elsom managed just 60 minutes of Super Rugby for the Brumbies due to hamstring and ankle injuries.