Rugby Australia will pay Scottish Rugby (SR) an undisclosed amount of compensation after Fukofuka was unveiled as the new Wallaroos coach barely a week after leaving the same post in Britain.
The 47-year-old stepped down from his Scotland job after only eight months citing "the stress and the strain" of being away from his family in Australia.
SR performance director David Nucifora, RA's one-time high-performance boss, initially said he respected and understood Fukofuka's reasons for leaving.
But now Fukofuka has signed a contract with the Wallaroos until the 2029 Rugby World Cup and will take up the position in January.
"This is an unusual situation in so far as we released Sione on compassionate grounds a week ago," said Scottish Rugby in a statement.
"Whilst we always expected Sione to work again and would never wish to hold anyone back, we were surprised to learn of this news so quickly.
"We have a release agreement in place with Sione, which will allow him to take up his post at the start of 2027, and an agreement in place with Rugby Australia, who will pay Scottish Rugby an agreed fee."
Fukofuka has previously been United States women's head coach, the Queensland Reds women's attack coach and a Wallaroos assistant.
"Although a difficult decision to leave the Scottish role, this opportunity allows me to be in Sydney closer to my family," he said.
"I know many of the players and coaches well from my time in the Queensland and Australian systems and, as we transition to a fulltime program this year, the opportunity for growth is enormous."
Fukofuka' appointment comes as rugby sevens superstar Maddison Levi is in line for a possible Wallaroos debut after being included in a 30-player squad for Australia's upcoming 100th Test against New Zealand in Auckland.
Levi is one of four uncapped players named in a new-look Wallaroos squad that also features NSW Waratahs player of the year Amelia Whitaker, Queensland captain Jemma Bemrose and Western Force forward Pia Tapsell.Australia's all-time leading sevens try-scorer, Levi could link up with teammates Tia Hinds, Alysia Lefau-Fakaosilea and Bienne Terita in XVs for the first time on August 22 in Auckland before preparing for next month's Ultimate Sevens competition.
The 24-year-old is one of 10 players to join the squad for the first time in 2026 while 20 players return following the Pacific Four series in April.The youngest-ever Wallaroos debutant, Caitlyn Halse, is back in gold after a successful injury return through Super Rugby Women's this season.
Waratahs forward Leilani Nathan and Western Force pair Hera-Barb Malcolm Heke and Allana Sikimeti have also earned Test recalls after making their debuts for the Wallaroos previously.
Faliki Pohiva, Adiana Talakai, Georgina Friedrichs, Tabua Tuinakauvadra, Ella Ryan and Brooklyn Teki Joyce headline a list of players unavailable for selection through injury.
"It is a fresh start for everyone involved in the Wallaroos program and this next campaign is our responsibility to set a platform on the road to 2029," said RA women's high performance director Tim Walsh.
Wallaroos: Jemma Bemrose, Lily Bone, Emily Chancellor, Piper Duck, Waiaria Ellis, Martha Fua, Caitlyn Halse, Tia Hinds, Brianna Hoy, Eva Karpani, Kaitlan Leaney, Alysia Lefau-Fakaosilea, Michaela Leonard, Maddison Levi, Hera-Barb Malcolm Heke, Brittany Merlo, Desiree Miller, Faitala Moleka, Tania Naden, Leilani Nathan, Bridie O'Gorman, Siokapesi Palu Sekona, Allana Sikimeti, Piper Simons, Cecilia Smith, Maya Stewart, Pia Tapsell, Bienne Terita, Amelia Whitaker, Samantha Wood.
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