The decision comes in response to a passionate campaign from Supercars fans following an announcement last year that Larkham would not continue in his television role as powerbrokers moved to dumb down the coverage.
Supercars CEO Sean Seamer has now acted, admitting an error of judgement had been made.
“We do listen, and it is clear how much the fans love Larko,” Seamer told Supercars' official website.
“It was a mistake for us to part ways, but the outpouring of support from our fans proved we couldn't carry on without him.
“It gives us great pride in knowing how strongly our fans care about Larko, and how much they care about Supercars.”
Larkham declared it “kinda cool” to have had such support from the fanbase.
“Like Supercars, I could not in good conscience ignore the will of the fans whose very participation has kept me in the business for most of my life; but at the end of the day, this is not about me, this is about the fans,” he said.
“The fans that love our sport, watch our telecasts, buy tickets and team merchandise; and keep the whole show alive. They spoke, Supercars listened and responded; kinda cool.
“So in a really good way, over Christmas you did put an enormous weight, not burden, on my shoulders, and Supercars gave me lots of time to consider my position, and I thank them for that.
“Add to that my deep love of our sport and the fact that Supercars, and Sean in particular, allowed me to agree a very clear pathway back in, where most importantly I can continue to do what I do, including bumble, fall, drop things and make mistakes.”
“We can now continue to enjoy that journey together in the years to come; I am genuinely enthused about what lies ahead in our championship,” he said.
“So to everyone that supported, spoke out, commented, created and signed petitions, and showed care for both myself and our sport, I say a very, very sincere thank you.
“I'll say again, you have humbled me, deeply, forever, and I promise you I will not abuse the privilege you have now offered me.”
The Supercars season gets underway with the Repco Mt Panorama 500 on February 26-28.