Pujara was a huge success on the south coast last season, churning out 1,094 LV=Insurance County Championship runs in just eight appearances at an average of 109.40.
The 34-year-old, who reclaimed his Test spot against England on the back of his prolific domestic form, also captained Sussex in the Royal London Cup and has agreed to spend next summer with the club.
"I am glad to be back with Sussex for the 2023 season. I thoroughly enjoyed my last stint with the club last season, both on and off the field and I'm looking forward to contributing to the team's growth and success in the coming year," he said.
Sussex performance director Keith Greenfield added: "It is fantastic news that Cheteshwar will be returning, we all saw the class he showed with the bat and his performances, but he was also outstanding in our young dressing room as a world class role model for them to follow."