The Tasmania-born Faulkner's move to the Hurricanes franchise has come after being with the Melbourne Stars for seven seasons.
Cricket Tasmania chief executive Nick Cummins said Faulkner would add "significant value" to the Hurricanes, who finished runners-up in last season's BBL.
"We are pleased to finally have the opportunity to work with him for a full 12 months of the year and help him get back into the Australian squad," he said.
"The fact he is a Tassie cricketer makes it all the better and he holds a fantastic record in the Big Bash, IPL and at the T20 International level," he added.
Commenting on his signing with the Hurricanes, Faulkner said: "I had always hoped to return to playing all my cricket in Tasmania when the time was right.
"I really love the feeling around the team now and I'm impressed by the culture they've managed to build. I think the state is going from strength to strength, and that was a big part of my decision to come home, play alongside my mates and enjoy all my home domestic cricket formats here.
"I want to thank the Melbourne Stars for everything they've done for me over the last seven years. They were very supportive of me when I was playing with Australia and I've loved every minute with them," he added.
First Published: May 15, 2018, 6:06 PM IST