Foley, 29, recommitted to RA despite offers from overseas, with next year's World Cup a target.
The playmaker said he wanted Australia to contend in Japan in 2019 after being part of the Wallabies' losing team in the 2015 final.
"I'm really happy to re-sign and now focus on pushing ahead to focus on what's a really big season next year," Foley said.
"The World Cup is obviously a major carrot and I've got a lot of belief in this group that if we continue to work hard and focus on improving every day, then we can push deep into the competition.