The 48-year-old shocked Cricket Australia when he resigned in May 2012 after a successful 12 months in the job, which then also included coaching the one-day and Twenty20 bowlers, citing the conflicting demands of touring with family life.
But he has been enticed back in a revised role in which he will focus on the Test team, with the incumbent Ali de Winter moving into a new position overseeing the limited overs' bowlers only.
"There is obviously a huge focus on regaining the Ashes this summer and I'll work as hard as possible to prepare our bowlers for the challenge ahead," he said.
Cricket Australia team performance manager Pat Howard said they had been considering splitting the bowling coach roles for some time, given the amount of cricket played.
"We feel that with the amount of touring now it is extremely difficult for every member of the support staff to be on every tour," he said.
"Less time travelling for both Ali and Craig also means more time at home to plan, work with the states or Big Bash League teams and also directly with the bowlers on technical aspects or other areas for improvement," he said.
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