"It's a great feeling to know that things are sorted and now I can continue to improve as a player and as a member of the Queensland Reds and the Wallabies, Cooper said in a statement. "I'm confident I'll front for round one in peak physical condition and primed to play the best rugby in my career.''
The 24-year-old Cooper has 38 test caps for Australia and ARU's acting chief executive Matt Carroll said he hopes Cooper will accrue more.
"This means Quade Cooper and the Reds can now focus entirely on the upcoming 2013 season,'' Carroll said in a statement. "Quade can now look forward to getting back on the field ... and in turn stake his claim for re-selection in the Wallabies squad.
"Next year is an exciting year for Australian rugby with the British and Irish Lions venturing to our shores for the first time since 2001.''
Cooper sustained a serious right knee injury at last year's Rugby World Cup in New Zealand and faced a seven-month recovery to regain fitness and confidence. He was able to return to the Reds lineup during last season's Super 15 but reinjured the knee late in the season and missed Australia's end-of-year European tour.
His new deal will not prevent Cooper from taking part in a charity boxing bout on Feb. 8 eight days before Queensland kicks off its Super rugby campaign against the ACT Brumbies in Canberra.
-AAP