James O'Connor looks set to challenge for World Cup selection after agreeing a deal with Rugby Australia and the Queensland Rugby Union.

The two organisations jointly confirmed a two-and-a-half year deal for O'Connor, who will play for Queensland Reds in next year's Super Rugby tournament.

Utility back O'Connor, 29, won the last of his 44 Test caps in 2013.

He joined Sale Sharks four years later following a stint at Toulon, with Sale releasing him from a three-year contract earlier this month in order to pursue international ambitions.

He will be considered for Australia's Rugby Championship campaign, which starts against South Africa on Saturday, while the Japan-hosted World Cup begins in September.

"I just want to say how grateful I am to be given this opportunity again," O'Connor said.

"There has been a lot of work put in behind the scenes, and a lot of guys have shown faith in me, so all I am focusing on right now is putting my best foot forward."