Kerr recently left Chelsea, where she enjoyed a trophy-laden six years, and has long been expected to return to the United States.
The Gotham contract means the superstar will play in the US for a critical period for Australia, including next year's Women's World Cup in Brazil, plus the 2028 Olympics in Los Angeles.
Kerr comes full circle in returning to the National Women's Soccer League (NWSL), having broken onto the global scene at Sky Blue FC - Gotham's former name before it rebranded in 2021.
"I'm incredibly excited to return to Gotham FC and to this city," said Kerr.
"This club was an important part of my journey, and to come back at this moment, with everything Gotham has built, is really special.
"The ambition here is clear, and I'm looking forward to helping this team compete for trophies and create more history."
Kerr returns to the US, officially as of July, after her final two seasons at Chelsea were spent either injured or fighting back from her anterior cruciate ligament (ACL) injury.
The NWSL has long been hailed as one of the world's most even and high quality leagues.
Kerr and other Matildas players, like Caitlin Foord and Steph Catley, used to juggle the NWSL season with the W-League (now A-League Women) before they headlined a wave of players who headed to Europe.
Kerr's signature indicates the tide could potentially turn back that way, with goalkeeper Mackenzie Arnold (Portland Thorns) also based in the US.
The striker is still the NWSL's second-highest goalscorer and her record of 78 goals stood for seven years until it was broken by Lynn Biyendolo in 2024.
Kerr spent three seasons with Sky Blue FC from 2015-17, notably winning the league's golden boot and most valuable player awards in 2017.
The 32-year-old was also leading goal scorer in 2018 and 2019 as her career took off with Chicago.
Kerr won her second league MVP in 2019 before heading to England, where Ballon d'Or nominations, trophies and accolades galore followed.
"Sam is one of the defining players of her generation and a game-changing talent who has consistently delivered at the highest levels of world football," Gotham FC president of soccer operations Yael Averbuch West said.
"Her winning mentality, relentless competitiveness and ability to decide matches in an instant make her one of the most impactful players in the game.
"Bringing Sam back to Gotham is a landmark moment for our club, and we couldn't be more excited."
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