Lynagh, the son of World Cup-winning flyhalf Michael, made his first three test starts against the British and Irish Lions last year but suffered a concussion in the series finale and did not play again in 2025.
This year, calf injuries have restricted the 23-year-old playmaker to 18 minutes of Super Rugby Pacific action off the bench for the Queensland Reds.
Lynagh has been working hard on his strength and added six kilograms to a frame that some considered too slight for a long career at test level.
"I've felt faster and stronger the times I have trained. I've felt better in contact and more confident with areas of my athletic ability," Lynagh said in a Reds news release.
"I feel those will all be assets when I do return."
Lynagh, a fine kicker of the ball both from hand and tee, also paid tribute to Reds coach Les Kiss, who will take over as Wallabies coach from Joe Schmidt after July's Nations Championships tests.
"Les has been very good over the past few years," he said.
"I like the way he thinks about rugby and the game plans he's installed where there is freedom to express yourself. I've said it before, it's a strong environment to improve in as a number 10."
Flyhalf has been a problem position for Australia over the last few years and Kiss said Lynagh had great potential.
"Tom is a prodigious talent, albeit this has been a difficult season for him so far," he said.
"His growth has been fantastic in recent seasons. Playing against the Lions last year was just a glimpse of what is possible in his future."