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Thorn, 33, returned to New Zealand last year after a second stint in the National Rugby League (NRL) with the Brisbane Broncos.
He rejoined the Crusaders for this year's Super 14 championship.
"Brad made a successful transition back into a team he last played for nearly four years ago which shows the character of the man," NZRU general manager of professional rugby Neil Sorenson said today.
"It is fantastic that he is committed to playing rugby in New Zealand until next year."
Thorn played 12 tests for the All Blacks in 2003 and appeared in two Super 14 finals with the Crusaders in 2003 and 2004.
He also played in the Canterbury team who won the NPC Division One title in 2004.
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