Larkham is fully committed to his country

Larkham rejected offers from several overseas clubs to remain in Australia.

"There is nothing better than pulling on a gold Wallaby jersey and playing for your country, so from that point of view it was an easy decision," he said.

"It is a big year ahead for the Wallabies. The team will be keen to bounce back after the disappointment of losing the Rugby World Cup final."

Larkham has played 66 Tests, including the 1999 World Cup triumph and last year's World Cup runner-up finish.

Wallaby coach Eddie Jones welcomed Larkham's decision.

"Stephen is a player with amazing talent and a wealth of experience and it's great that he's made the decision to stay in Australia," Jones said.

"To know that you have someone with his capabilities on your side is definitely a bonus, particularly as we are up against some impressive opponents in the coming tests."

Australia has a World Cup final rematch with England in Brisbane in June and two Tests against Scotland.

And the Tri-Nations series against New Zealand and South Africa is scheduled for July and August.