Australian Rugby Union said the 26-year-old, with 49 Test caps, had re-signed with the Waratahs and the national body after a turbulent season saw him heavily fined for sending a crude text message to the team's business manager.
"I'm really looking forward to the year ahead and am grateful to the ARU and Waratahs for the opportunity to continue my career here in Australia," Beale said in a statement.
He featured in 10 of a possible 14 Wallabies Test matches in 2014, and helped the New South Wales Waratahs to a maiden Super Rugby title last year, but the text message incident had put Beale's future in serious doubt and saw him linked to foreign clubs.
"With the Rugby World Cup coming up, I'm looking forward to getting back out there and playing some good rugby for the Waratahs and hopefully getting selected for the Wallabies," the 26-year-old said.
Wallabies coach Michael Cheika, who also coaches the Waratahs, paid tribute to Beale, who has endured multiple suspensions and been forced to undergo counselling and rehabilitation for alcohol-related issues.
"Kurtley is a fantastic player who will add to our great talent pool of inside backs," said Cheika.
"I'm looking forward to getting the best out of him again over the next 12 months."
Beale, who was also punished for being rude and disrespectful to the team management, was fined a total of Aus$48,000 (US$40,000) for sending an offensive text message to then-Wallabies business manager Di Patston.
Patston subsequently resigned and coach Ewen McKenzie, who was embroiled in the fracas, also stepped down at the end of the Rugby Championship. AFP