The 27-year-old British Lion will return to The Gnoll next season after signing a deal worth �420,000, plus a �50,000 signing-on fee.

"It's fantastic news, I think Barry is a great player," said Neath captain Gareth Llewellyn.

"He obviously wants to get back into Welsh rugby - to get back in front of Graham Henry on a regular basis. And it'll certainly help our cause."

He added: "There are a number of people interested in buying the club from the Welsh Rugby Union, which will hopefully give (Neath coach) Lyn Jones a bigger budget to work with.

"If that means better players coming to the Gnoll that means better rugby for the supporters to watch - and more success and silverware."

The Chepstow-based hooker is desperate to add to his 15 Welsh caps after being consistently overlooked by coach Graham Henry since he moved to the Memorial Stadium from Richmond in 1999.

Llanelli and Bridgend were also interested in bringing Williams back across the Severn but Williams has opted to head back to the All Blacks he left in 1997.

Neath have refused to confirm the signing, but Williams' agent, Mike Burton, said: "This is a brilliant move for Barry.

"He's going home to reclaim his place in the Welsh side. He has had a wonderful time with Bristol but he wants to play international rugby again."