The Hollywood Reporter said the move comes after Fox declined to renew her previous three-year contract in January after she publicly complained for months about being underused on the network.
"The power of Fox News is unparalleled. The role of Fox News in the important debates in our world is indispensable," Palin said in a statement Thursday. "I am pleased and proud to be rejoining Roger Ailes and the great people at Fox."
"I've had several conversations with Governor Palin in the past few weeks about her rejoining Fox News as a contributor," Fox News Channel President Ailes said in a separate statement. "I have great confidence in her and am pleased that she will once again add her commentary to our programming. I hope she continues to speak her mind."