Originally signing for Glamorgan as a relatively little-known international player, Labuschagne hit 1,114 Championship runs in 2019 to earn a starring role in the Ashes series that summer.
He then rose to become the top-rated batter in the world during his time at the Welsh county.
“I’m super motivated, as I always have been, I want to be the best, I’ve said that before,” added Labuschagne.
“I want to be the best batter in the world. At the moment, in the last year, I just haven’t been at my best and for me it’s just finding that rhythm and being able to use Glamorgan to find that rhythm and score runs… and make sure the team is winning games and that’s really my objective.
“I love the club and I want to do something great with the club and see that journey progress in to Division One.
“We’ve been so close a few years but hopefully this year can be the year we can do it”.