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The club announced on Facebook yesterday the former All Blacks half-back and Rugby World Cup winner has signed a new deal with the club.
Ellis, 36, will join fellow Kiwi Kara Pryor and former England international Ben Foden at Rugby United New York.
He ended his tenure with Japanese club, Kobelco Steelers, last year.
"More than 150 games for the Crusaders and 28 games for the All-Blacks (sic)...this experienced half-back becomes a New Yorker after recently helping Kobe to Japanese success," Rugby United New York said.
Speaking to RugbyPass, Ellis said a break from the game has helped get his body back into top condition and left him hungry for a new challenge.
“We’ve talked about these sabbaticals for the last 10 years really, guys having time off from the game, and I never really fully understood it myself,” Ellis told RugbyPass.
“We play footy, why would we need time off?"