Booker T's talks with WWE about a return go back to the Tables, Ladders and Chairs pay-per-view in Houston, Texas in December. Booker was backstage visiting and expressed interest in returning. No contract was signed then and while he kept talking with TNA, a deal was in place with WWE for him to be a Royal Rumble surprise.
As noted previously, Booker T will now be an announcer on Friday Night SmackDown. Booker is expected to do the occasional storyline and match, similar to Jerry Lawler.