Neagle, who along with Mike Fucito was sent to the Impact last winter for forward Eddie Johnson, was acquired for an international roster slot that runs through the 2014 season.
"We are very excited about bringing Lamar back to Seattle," Sounders FC sporting director Chris Henderson said in a press release. "He is an attacking midfielder who plays smart and adds versatility to our club. Lamar scored a few key goals for us in the past while being a very consistent player. He is a great teammate and positive presence in the locker room."
The 25-year-old Neagle appeared in 23 games last season for the Impact, starting 11, and scored two goals. In 2011, Neagle scored five goals for Seattle, including a hat trick in a win over Columbus, and showed enough promise that Seattle protected him in the 2012 expansion draft even though he wasn't a regular starter. But when Sounders FC saw a chance to get Johnson, who ended up scoring a team-record 14 goals last season, it decided to part ways with Neagle.
This will be Neagle's third stint with Sounders FC since he joined the expansion team in 2009. Neagle signed with Seattle out of UNLV, but never appeared in a regular season game in 2009. He spent the 2010 season with the Charleston Battery, and that chance to play regularly in a lower division helped him earn a more successful return to Seattle in 2011.
"It's amazing to come home and rejoin the Sounders," Neagle said in the release. "The fans have had so much support for me throughout my career and Sigi was the first coach to give me a chance. It'll be fun for me to connect back with the guys and get to work. I'm looking forward to having a strong season."
Sounders FC opens the 2013 season hosting the Impact on March 2 at CenturyLink Field.
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