"My family are all in Brisbane so to get an opportunity to play for a club like the Brisbane Broncos again, I am over the moon," Stagg told AAP.
"Brisbane have given me an opportunity to keep playing in the NRL and I couldn't be happier."
With strike forward Ben Te'o heading to South Sydney in 2013 there is an opening for Stagg to be part of Broncos coach Anthony Griffin's backrow rotation with his high work rate and utility value.
"That's exactly what the coach said to me and I am looking forward to the challenge," Stagg said.
"Going to the Bulldogs was one of the best decisions I made and I played some really good footy."
Stagg's two-year deal gives him a chance to bring up two major milestones with the club where his career started in 2003.