Rising star Davies signs Ospreys deal
Wales's outside half Sam Davies (L) passes the ball on June 9, 2013 at the Pascal Laporte stadium in Nantes, western France - by Thomas Bregardis
The 20-year-old fly-half starred for Wales in last summer's Junior World Championship, helping them reach the final, and was subsequently honoured by the IRB.
"This is my home region and it's somewhere I am really happy to be," said Davies, who made 20 Ospreys appearances this season, and agreed a deal that will run until 2017.
"I've really enjoyed being involved with the senior team and getting some experience this season, and I've got a real challenge ahead of me over the next three years to keep on improving and to establish myself fully within the group."
Osprey's rugby operations manager, Andy Lloyd, said: "It says a lot about his maturity for such a young man, and also his footballing class, that he has settled in so well to the senior group while coming to terms with not just senior rugby but also an unfamiliar position."