James came through the ranks at the Sharks, first playing in the Currie Cup team before making his Super Rugby debut in 2001.
The fly-half went on to join Bath in 2007, spending four years at the Aviva Premiership outfit before returning to South Africa to play for the Lions.
However the 33-year-old will now head back 'home', with James set to provide cover for Patrick Lambie as well as mentoring the club's next generation of stars.
James, who was capped 42 times and part of the 2007 World Cup-winning side, wrote on Twitter: "Officially Black & White for next year! It's good to be home!!"
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The entire All Blacks apparel line has been updated for 2013/14. Check out the New Zealand All Blacks polo.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Gilbert Blitz 8S rugby cleat is a great cleat at a great price of $69.99. Get a new pair of cleats today.
A cool looking all black rugby cleat with the high performance adidas is known for. Get in the Gear!
Wear the crest of the British and Irish Lions on your t-shirt. A great look for the summer.
The All Blacks Performance t-shirt is black with hints of blue from the training jersey. Very Cool.
The New Zealand All Blacks training jersey for 2013/14. Get in the Gear!
The USA Rugby Pro Alternate rugby jersey is perfect for any fan of the Eagles. Get yours to wear during the summer Test matches.
The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.