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The news is all good for All Black Luke McAlister, with the utility back cleared to take his place on the upcoming end-of-year tour should he be required.

It had looked bleak on Monday when the 26-year-old rolled his ankle in a "freak" incident at North Harbour training, with initial fears that he may have fractured a bone.

McAlister was immediately declared unavailable for the remaining two weeks of Harbour's Air NZ Cup season and speculation rose that Graham Henry had just lost one of his key backup men for the tour.

But an MRI scan has revealed that McAlister's injury is not as serious as had been initially feared.

The scan showed no structural damage and the prognosis was he would need only a short rehabilitation period to regain full fitness. He is expected to be available for the All Blacks' first game of their tour, against the Wallabies in Tokyo on October 31.

Henry will be pleased the talented Harbour player is back in the selection picture.

McAlister, who covers both first and second five-eighths, only returned to New Zealand in May from a two-year stint playing for Sale in the UK.

However, after being rushed into the All Blacks ahead of schedule he struggled through the domestic international season and was eventually removed from the picture after suffering a fractured cheekbone in the August 22 Bledisloe in Sydney. He had to have metal plates inserted in his battered face.

He only just made it back on to the field last Saturday in Harbour's upset victory over Bay of Plenty after six weeks on the sidelines.

But after scoring a try in a tidy display he declared he had unfinished business in the All Blacks and was motivated to finish his year on a high note.

"That's always something as a rugby player you want to do - you want to perform well and at your best," said the 28-test All Black.

"It has taken me a while to get back into it. I felt my best going into that game against Australia [in Sydney]. That week I'd felt really good at training, then it was another setback.

"I guess that's something you take in the professional game. You take the injuries and setbacks. It's how you come back that's the key."

The good news is that McAlister now gets to make that comeback. Henry announces his touring squad on Sunday.

Former All Blacks star Luke McAlister is to return to New Zealand and has re-signed with the NZRU through until 2012.

McAlister, who left New Zealand rugby at the end of 2007 to play for English club Sale, will return to New Zealand at the end of the English Premiership season in May.

Commenting from his home base in Manchester, McAlister said he was looking forward to coming home.

"The simple reason why I am leaving England and heading home is because I want to be closer to my family who are very important to me.

"The fact that I can continue my rugby career as well back in New Zealand is obviously fantastic as well and I appreciate being given the opportunity, but family comes first."

McAlister, who is currently recovering from a knee operation, said he felt he had developed as both a person and rugby player in England and was hoping to leave English club rugby on a high.

"We have a chance of having a crack at the top four (in the Premiership) and hopefully we can give the local fans, who have been great to me, a great end to the season."

NZRU CEO Steve Tew said the NZRU negotiations with McAlister had stepped up over the last two weeks and the deal had only been finalised in the last 24 hours.

"This is very good news coming on the back of yesterday's [Thursday] announcement that we have re-signed Brendon Leonard, Andy Ellis and Stephen Brett.

"As all New Zealand and English rugby fans know, Luke is an incredibly talented rugby player and we are delighted that he has chosen to return home."

Tew said while McAlister had signed with the NZRU, he was yet to decide on his provincial or Super 14 future and would discuss that on his return to New Zealand.

25-year-old McAlister is one of the most versatile backs in the modern game who can play first five-eighth, second five-eight or centre and brings outstanding kicking skills to his game.

He made his All Blacks debut in 2005 in the third Test against the touring British & Irish Lions and went on to play 22 Tests, scoring 120 points, before heading to Europe at the end of 2007.