Phillips faces a battle for an Ospreys starting place

Blues scrum-half Phillips has agreed a deal thought to be worth �700,000 until May 2011 while Dragons lock Gough, 30, has signed a contract until May 2010.

Phillips, aged 24 with 19 caps, will compete for the number nine jersey with former All Black Justin Marshall.

Gough, who has 30 caps, will be up against fellow Wales locks Brent Cockbain, Ian Evans and Alun Wyn Jones.

Mike and Justin are good professionals and I anticipate that the squad will be foremost in their thoughts Ospreys coach Lyn Jones

"Ian has an excellent technical game which, combined with his physical presence, will offer a standard of performance that no one can afford to drop under," said Ospreys coach Lyn Jones.

"With regular demands at international level throughout the season it is important that key positions are well staffed. The group of players we have in this boiler-house next season will be second to none.

"Mike and Justin have had some enthralling battles this season and I look forward to seeing their contest for the Ospreys number nine shirt.

It is great news for everyone in Welsh rugby that these players are now retained within the Principality Ospreys director of rugby Kevin Hopkins

"They are both highly competitive individuals, although somewhat at differing ends of their careers, and neither will want to play second fiddle.

"But they are good professionals and I anticipate that the squad will be foremost in their thoughts."

Ospreys director of rugby Kevin Hopkins added: "I am delighted that we have been able to secure such high quality Welsh players on long-term contracts.