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Carle, who narrowly missed out on a World Cup berth, returns after four years in Europe including stints with Turkey’s Genclerbirligi and English clubs Bristol City and Crystal Palace.
“I couldn’t be happier to sign on with Sydney FC. I am returning to my hometown and joining a club that is leading the way in Australian football,” Carle, 28, said in a statement.
“My focus is now purely on giving everything I have for Sydney FC. I am in good shape and will work as hard as I ever have.”
Coach Vitezslav Lavicka said Carle, who was signed until 2013, would bring attacking flair and was expecting him to forge a strong partnership with forwards Alex Brosque and Mark Bridge.
“Nicky... is entertaining to watch and that is the way we will play this season. He is experienced, fast and plays with excellent vision,” Lavicka said.
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