The Manchester City striker will stay on loan at Blackburn until the end of the season.
Santa Cruz joined City from Blackburn in a £17.5million deal in 2009, but has failed to make an impact at Eastlands.
“I feel like I am coming home. This has been the easiest decision of my career,” Santa Cruz told the club’s official website
“I want to get playing and scoring goals again and this is a real chance for me to prove myself after a frustrating period. Everyone knows what Blackburn Rovers means to me.”
