According to the stuff.co.nz website, After making his 50th Super Rugby appearance for Waratahs against the Brumbies earlier this month, the 27-year-old announced he will stay on with the Waratahs until the end of the 2015 season.
Kepu has played 23 Tests for Australia since his debut against Italy in 2008.
The Sydney-born, Auckland-raised Kepu said there were attractive offers tabled from overseas, but his focus was on unfinished business in Australia.
"Attending the Rugby World Cup in New Zealand two years ago was a significant moment, but we didn't achieve all we wanted to at that tournament," Kepu said.
"There is still some unfinished business there. By staying in Australia, I can give myself another shot by aiming for the team for the next one in England in 2015.
"I've debuted and progressed with (the Waratahs) and I want to stay on and try to accomplish all the things that I first wanted to do here. The organisation is building something special. I guess I want to be around to be part of that."