Yorke, who played for Sydney FC before joining Sunderland in August 2006, held talks with Central Coast Mariners about a return to the A-league only for the move to fall through.
"That would have been my ambition, to come back here," Yorke told the Australian newspaper the Daily Telegraph.
"I felt this year would have been the year to come back and stamp my authority in terms of playing football and getting the football buzzing around Sydney again.
"My last conversation (with the Mariners) was, 'Yeah, we'll get it sorted'. We looked at a figure that was reasonable for them, it wasn't great for me but I was prepared to come for that.
"Sunderland have offered me a contract because they know I can still produce it," he added.
"I'm 36, there's no secret there. I'm coming to the end of my career, I'm looking for something with a bit more flavour - in terms of lifestyle, the weather, people and food. Sydney fits that bill."