Dureau debuted for the Knights in the NRL 2007 and played 42 games for the club before joining Catalans in 2011.
The playmaker spent four seasons in Super League, making 97 appearances for the Dragons and scoring 30 tries.
Hailing from nearby Taree, Dureau was a Newcastle junior and has rejoined the club to be part of Nathan Brown’s coaching staff.
“I decided that it’s what’s best for my wellbeing and I feel I can contribute more as a coach than as a player as the physical demands of the game keep getting harder,” he told Love Rugby League.
“I’m better off helping younger players develop and improve.
“It’s something I’ve always wanted to do and the opportunity came up in Newcastle, which is home, so it all worked out.”
Dureau is working for the Knights as a halves and kicking coach for first-grade and as assistant coach with the Under-20s.
The scrum-half was selected in the Super League Dream Team in 2011 and 2012, and was awarded the Albert Goldthorpe Medal in 2012.
Dureau suffered a brain tumour in September 2012, which kept him out of the game for nine months. He recovered to return for Catalans, playing 10 games for the French side in 2013.
Dureau said he has always held aspirations to be a rugby league coach.
“I’ve always wanted to coach,” he said.
“I’ve always enjoyed helping guys I’ve played with improve.
“So I’ll see how I go but maybe one day, if I’m good enough, NRL head coach could be an option.
“I’ll see what happens.”