Milner-Skudder missed most of 2016 with a shoulder injury after bursting onto the international scene in 2015, scoring six tries in the All Blacks successful World Cup campaign.

The 26-year-old said staying in New Zealand was an easy decision as he wanted to add to his eight Test caps and the All Blacks refuse to select overseas-based players.

"It's been an absolute honour to represent my country and wear the All Blacks jersey and the only way to do that again is to stay in New Zealand," he said.

"Hopefully, I can play well enough to be considered for selection again, but as always there is some massive competition there."

Milner-Skudder said he was now fully fit and hoping to break back into the All Blacks for this year's blockbuster tour by the British and Irish Lions.

He will also stay with defending champions the Wellington Hurricanes in the Super Rugby competition.