Wozniacki retired after the 2020 Australian Open to start a family but returned to the tour in Montreal in August.
The mother of two played her first Grand Slam in three years at the US Open and reached the last 16.
"I have so many wonderful memories of Melbourne and of course winning the Australian Open is an all-time career highlight," said the Dane, who beat Simona Halep in the 2018 final.
"It's obviously a tournament I feel extremely comfortable at. I love the balls, I love the court and I love the fans.
"I'm truly grateful to everyone for the wildcard and having the opportunity to compete again at the AO in January," the former number one, now ranked 242 in the world, added.
Wozniacki plans to bring Olivia, two, and one-year-old James to the first Grand Slam of the year from the Miami base she shares with her husband, the former NBA star David Lee.
The Australian Open runs January 14th-28th, with Aryna Sabalenka defending the women's title and Novak Djokovic the men's.
