Wales and British and Irish Lions number eight Toby Faletau has signed a new contract at the Dragons through to May 2016.
Faletau, who starred in the third Test victory over Australia last month, was expected to leave the Welsh side at the end of next season.
Aviva Premiership club Bath reportedly lodged an £100,000 offer to bring Faletau to England, whilst several sides in France were also interested.
The Tongan-born star has enjoyed a meteoric rise to the top since impressing at the Rugby World Cup in 2011.
Still only 22, the world-class talent will stay at Rodney Parade until 2016 after it was confirmed at a news conference on Monday.
"Toby has made a good decision early on in the season, putting an end to all the speculation surrounding his future," said coach Lyn Jones
"Throughout discussions with Toby I have been extremely impressed with his drive and motivation not only on a personal level but in his commitment to developing the Dragons into the best team in Wales."
Speaking from Rodney Parade, Faletau said: "I'm pleased to have committed to the Dragons so early in the season; this will help me to concentrate on my on-field performance and the challenges ahead this season. With the reputation of Lyn and Kingsley preceding them I'm looking forward to working with them and developing further as a player."
"It's clear the Dragons are taking steps to develop the Region and its team, with a number of new signings both on and off the field."
The news comes as a boost for domestic Welsh rugby, after a number of high-profile stars moved abroad over the off-season including George North, Jamie Roberts and Dan Lydiate.