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Soakai, who played 58 games for the Highlanders, and 60 games for Otago, left for the Kubota club in Japan after the 2011 Super 15 season.
He has now signed on for another two years with the club.
Soakai (29), who is in New Zealand on a short holiday, was replaced by Eben Joubert as Otago captain after skippering the side in 2009-10.
He played for New Zealand juniors and the New Zealand sevens team, winning a Commonwealth Games gold medal in 2006.
Soakai and wife Debbie, who has captained New Zealand at volleyball and played netball for Otago, are expecting a baby in mid-April.