The 30-year-old stopper decided to leave the Chilli Boys after starring for his country at the 2025 Africa Cup of Nations.
The Super Eagles ended in third place after beating Egypt on penalties, and Nwabali was credited for a a number of fine performances, throughout the competition.
Nwabali joined Chippa from Nigerian side Katsina United in 2022. He went on to play 76 games for South African top-flight team, who ended last term in 13th place, just four points off the relegation/promotion play-off places.
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“Chippa United Football Club is delighted to welcome Stanley Nwabali back to the Chilli Boys,” read a statement.
“After taking time away, Stanley Nwabali returns to the Eastern Cape, and we are pleased to welcome him back to the club.”