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The new one-year agreement will see Marshall return to the club where he made his NRL debut in 2003.
The 32-year-old Wests Tigers Premiership winner and Life Member has played 201 games for the club and returns for the first time since 2013.
Wests Tigers Head Coach Ivan Cleary welcomed Marshall back to the club.
"Benji has been one of the premier players in the NRL since his debut season and it's great to be able to welcome him back to Wests Tigers," said Cleary. "He brings more than 250 games of NRL experience back to this club which will be invaluable for our young side.
"I look forward to working with Benji over the coming year, he has a lot to offer this club and I know he's keen to return and make a positive impact on Wests Tigers," he said.
Wests Tigers CEO Justin Pascoe said that the Life Member brings a wealth of experience to the club.
"The whole club is really excited to be welcoming a legend like Benji back," said Pascoe. "Benji has as a long history with this club, with the Members, with the fans and with the stakeholders and bringing back a Life Member to help continue to transform this footy club is a great result for everyone.
"Benji will add experience and leadership to our young group of players coming through, not only on the field, but also off the field," he said. "Benji will be given every opportunity to compete for a starting position and put pressure on those ahead of him and he will also be expected to, and is looking forward to, be a mentor for the younger players coming through.
"What excites me the most is that Benji can see and believes in the direction the club is heading and wants to be a part of that, he sees that the future of Wests Tigers is extremely bright."
Marshall has played 264 NRL games for Wests Tigers, the St George Illawarra Dragons and the Brisbane Broncos and won the Golden Boot award in 2010. He has represented New Zealand on 25 occasions and was named a Wests Tigers Life Member in 2013.