Dwayne Peel has attracted interest from Europe's biggest clubs

Peel, 24, has spent all his career at Llanelli, but rumours linked him with a move to London Wasps next season as Matt Dawson's long-term successor.

His current deal would have expired in the summer, but the new contract takes him to the end of the 2007/8 season.

Mark Jones, Garan Evans, Gareth Bowen, Gavin Thomas, Aled Gravelle and Jon Mills also signed new deals at Stradey.

Evans' deal is for one year, the others either two or three years.

The Scarlets lost Stephen Jones to Clermont Auvergne last year, and coach Gareth Jenkins had feared more departures.

I don't think clubs come any bigger than this one both in terms of tradition and ambition Dwayne Peel

"What we can't afford to do and what Welsh rugby can't afford to do is to lose its stars to England or France," Jenkins said.

Welsh regional rivals the Ospreys had also made enquiries about Peel.

Scarlets v Wasps

Peel has been troubled by an ankle injury this season that kept him out of Wales' autumn internationals.

But he made a substitute appearance in last Friday's win over Sale and should return to the starting line-up for Sunday's crunch Heineken Cup game with Wasps.

Have Your Say on Scrum V Your thoughts on Scarlets

"I'm delighted to re-sign for the Scarlets," said Peel. "Naturally the interest from other clubs has been flattering, but I don't think clubs come any bigger than this one both in terms of tradition and ambition.

"I've grown up here and it's special. We're entering a really exciting time now and we've got the makings of a great squad and we're also moving to a new purpose-built stadium complex in 18 months time."