Utility back Peter Mata'utia will return to Newcastle with immediate effect after a receiving a release from St George Illawarra.
The Dragons announced on Wednesday morning they'd allowed the 25-year-old to leave the NRL club, prompting later confirmation from Newcastle that he'd be with the Knights through 2017.
"Peter is a local junior who we are bringing home, and that is important," Knights coach Nathan Brown said.
"More importantly he is a left centre, which is something we have been looking for.
"Peter is a good, consistent first grade player and he will help enhance our young developing players.
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Mata'utia, who reunites with younger brothers Chanel, Pat and Sione at the club, will train with the Knights for the first time on Friday.
The centre had played six games at the club before shifting to the Dragons in 2013, where he scored 11 tries in 35 games before his release on Wednesday.
