Bancroft was due to be playing for Somerset, but the county cancelled his contract following the Cape Town fiasco - which also resulted in Steve Smith and David Warner being given one-year bans.
But two months after that shameful episode, the southpaw played a T20 practice match against the Australia National High-Performance squad at Brisbane's Allan Border Oval.
Australia batsman Cameron Bancroft, who was banned for nine months, will join Warner for a limited-overs tournament in Northern Territory in July.
"We are excited to bring David to the Saint Lucia Stars", said Stars general manager Mohammad Khan. He has confirmed his participation in other cricket leagues such as Global T20 league Canada and Northern Territory strike league in Darwin.
While he is prohibited from taking part in worldwide cricket and domestic cricket in Australia, he is free to play overseas, and recently signed up for the inaugural Global Twenty20 Canada league in Toronto starting later this month.
St Lucia Stars begin their CPL campaign against Trinbago Knight Riders on August 8. He had to miss out on the Indian Premier League (IPL) season 2018 as well but he is soon to make a comeback in the T20 arena.