And the Sixways chief is convinced the attacking full back will be a smash hit at Warriors when he joins next season.
"We're absolutely delighted that Chris Latham, the world's best full back, has decided to join us at Worcester Warriors," said Director of Rugby Mike Ruddock.
"We've made no secret of the fact that we want to strengthen the team through the acquisition of world class players and by grooming our own young players through our Academy structure. With the arrival of Chris Latham and the re-signing of Chris Pennell it shows we are determined to develop both strategies.
"Chris has gained experience with New South Wales and Queensland Reds and was awarded the Australian Super 12 player of the year on four occasions - he has a fantastic rugby pedigree.
"His form in the 2007 Rugby World Cup was incredibly impressive and convinced me that he still has the ability, drive and ambition to continue to play top class rugby for the next three years.
"We are obviously pleased that a player of his stature and talent has decided to play rugby here at Sixways for Warriors.
"There is no doubt that the vision of the Chairman Cecil Duckworth and our recent recruitment success helped to persuade Chris Latham we are the club he wants to play for. We all look forward to welcoming him soon."