Wycliff Palu.

New deal ... Wycliff Palu has re-signed with the Waratahs Photo: Getty Images

Wallabies No.8 Wycliff Palu will remain in Australian rugby for at least another season after signing a new one-year deal to stay with the NSW Waratahs in 2013.

Hard-hit by injuries in the last two seasons, Palu said on Monday he had knocked back strong interest from Japanese clubs to continue in Australia, believing he's yet to play his best rugby.

However, he said he was attracted by the Japan offers and may go there later in his career.

Meanwhile, Palu's Wallabies and NSW Waratahs teammate Tatafu Polota-Nau was given a day off training on Monday and will be reassessed later in the week to decide if he's fit to play against the Bulls on Friday night.

The hooker suffered two heavy head knocks in Saturday's Super Rugby loss to the Brumbies.

Winger Tom Kingston (corked quad), the other big injury concern from that game, will also be assessed later in the week.

AAP