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Wales centre Scott Williams will stay with Scarlets until 2018 after signing a new deal, ending speculation over his future.

Williams, 25, had been in line for a fresh national dual contract in which the Welsh Rugby Union would pay 60% of his wages.

But the WRU withdrew their offer amid an accusation of a bidding war among Wales' regions over Williams.

He said it is "exciting" his career will continue at Parc y Scarlets.

Williams has been on a national dual contract since March, 2015, but the WRU's controlling interest in the player will end in the summer of 2016.

He is in his second season as Scarlets vice-captain, but has been sidelined by a knee injury since Wales' 2015 World Cup win over England at Twickenham.

Jonathan Davies returns to Scarlets from Clermont Auvergne for the 2016-17 season to partner Williams in midfield.

Davies, a 2013 British and Irish Lion, has signed a national dual contract to return, giving Wales a controlling interest in him.

It means Davies' Scarlets game time can be limited to under 20 appearances per season while Williams will be more freely available to them.

Scarlets coach Wayne Pivac said: "Having him (Williams) and Jonathan Davies in the centre next season is going to be very exciting."

Williams added: "Continuing with my rugby development in Wales was vitally important to me.

"I'd like to thank the Scarlets board and backroom staff who have been supportive throughout the negotiations."