"As a player he has a proven ability to create opportunities with his boot and can spark up an attack from anywhere on the park. We are fortunate and privileged to have him return and I will look forward to coaching him in the coming season."
Cruden's signing likely signals the end of the Chiefs' No10 experiment, with Damian McKenzie set to return to fullback.
His was the second major signing announced by a New Zealand franchise for the upcoming Super Rugby season, with English representative centre Joe Marchant agreeing to join the Blues.
Marchant joins the Auckland club on a sabbatical from parent club Harlequins, and was expected to help fill the gaping hole in the side's lineup left by the departures of Ma'a Nonu and Sonny Bill Williams.