Latham is the second-highest try-scorer in Australia's history

The 32-year-old Queensland Red, regarded as one of the finest players in world rugby, will join the club next season on a two-year deal.

Worcester will also have the option of retaining Latham for a third year.

"At this stage of my life I feel it the right time to experience new things and to give myself fresh and challenging goals," said Latham.

"I have enjoyed a wonderful decade of rugby with the Queensland Reds and the Wallabies.

"My family and I are really looking forward to moving to Worcester. I am very excited about playing in the Premiership for the Warriors."

MY SPORT: DEBATE What do you make of Latham's signing?

Latham's switch to the Premiership will be a huge blow to new Australia coach Robbie Deans.

Latham, who appeared in all of his country's World Cup matches this year, has won 78 caps and is the second-highest try-scorer in Wallaby history with 40.

The Australian Rugby Union, which earlier this year offered Latham an incentive-based, two-year contract to remain in the country, is expected to release him from existing contract obligations before the Wallabies' 2008 end-of-year tour.

He will play a final Super 14 campaign next year with the Reds and his final Wallaby appearance is likely to be in the Bledisloe Cup decider against New Zealand next September.

"We're absolutely delighted that Chris, the world's best full-back, has decided to join us at Worcester," Warriors director of rugby Mike Ruddock told BBC Hereford and Worcester.

"His form in the 2007 World Cup was incredibly impressive and convinced me that he still has the ability, drive and ambition to continue to play top-class rugby for the next three years."