Waterhouse has made 11 appearances for Australia
Warrington Wolves have signed second-row Trent Waterhouse and allowed centre Matt King to return to Australia to play for South Sydney Rabbitohs.
Waterhouse, 30, joins on a three-year deal from Penrith Panthers, where he has made 177 appearances.
King, also 30, who joins Wigan coach Michael Maguire at the Rabbitohs next season, has signed a two-year deal.
"Matt's had his time in England and he wants to come home," said Souths chief executive Shane Richardson.
"We're really happy to be able to attract a player with the experience and talent that Matt King possesses to our club for the next two years," he added.
Former Test second-rower Waterhouse, who has made 11 appearances for the Kangaroos, has also represented New South Wales five times.
"He's a high quality international player who fits our needs and our team extremely well," said Warrington coach Tony Smith.
"I am looking forward to working with him. Trent's a great replacement in terms of experience and leadership value. That was very much a focus for us given the amount of leadership that Matt plays within the team.
King has won the Challenge Cup twice with Warrington
"It was important that we gain an experienced player who has got a great leadership style."
King is expected to recover from a rib injury sustained while scoring the third try in
Friday night's 35-28 win against St Helens
in time for this Friday's Super League game with Castleford.
Wolves are going to be without skipper Adrian Morley for the clash with Cas, but winger Joel Monaghan could make his return.
Morley suffered concussion during the victory over Saints, while top try scorer Monaghan has been out with a knee injury since 27 May.
Wolves coach Tony Smith told BBC Radio Manchester: "Monaghan might be back in the fray this week - that's another positive for us.
"But Mozza's got a couple of head knocks so he's getting a rest."
Louie McCarthy-Scarsbrook will appear in front of a Rugby Football League disciplinary committee
on Tuesday accused of a high tackle on Morley.
Meanwhile, Warrington second row Louis Anderson, injured in
the Exiles match,
is nearing a return for the league leaders.
"Louis will be very close," added Smith. "But I'm probably going to be cautious and keep him wrapped in cotton wool for another week and then we'll know for sure if he's right.
"But we're in a pretty good place at the moment - we're getting some bodies back and we aren't picking up too many injuries, but losing Mozza for a week is enough in itself."