Cameron Bancroft will return to Durham as the club's overseas player for the 2020 season.
Bancroft captained Durham in the County Championship and the Royal London Cup this year, which represented a controversial appointment in the wake of his involvement in Australia's ball-tampering scandal.
But director of cricket Marcus North repeatedly defended the decision, and Bancroft ended up leading the club's averages in both first-class and List A cricket.
He made 726 runs at an average of 45.37 in nine Championship matches, and a further 377 runs at an average of 94.25 in the Royal London Cup.
Bancroft will be available for all three formats, though the club is yet to confirm whether or not he will continue as captain.
"We are delighted to welcome Cameron back to Emirates Riverside for our 2020 season," said North.
"He has had a huge impact on the field with his leadership and undoubted quality through his performances. Cameron has also had an impact off the field as an ambassador for the club with a number of community projects."
It is expected that several other members of Australia's Test squad will sign county deals for 2020. Peter Siddle is already on a two-year deal at Essex, while several clubs have enquired about the availability of Nathan Lyon.
Australia are not scheduled to play a Test between February and November next year, and many of their internationals are expected to enter into the draft for The Hundred, which starts immediately after their white-ball series in England.