Priestland, who has appeared 127 times for his region, is another senior figure in West Wales Rugby that has opted to stay at his home region to retain a strong back line next season at Parc y Scarlets - alongside international centre Scott Williams who has been secured on a new contract, Wales full-back and wing Liam Williams, exciting scrum-half talent Gareth Davies who has also extended his contract and world-class centre Regan King returning to Llanelli next season from Clermont Auvergne.
Added to the experience of key senior players like Priestland at Parc y Scarlets, the Scarlets have a group of young backs coming through strongly including the talented young Jordan Williams.
Priestland's signature is another significant signing for the West Wales Region in recent weeks, as one of a number of Scarlets in their international ascendancy that have come through the region's successful development system over the past decade.
Priestland started out his regional rugby career as part of the Scarlets Academy aged 18 having played for Llandeilo RFC and Carmarthen Athletic. Born in Carmarthen, he is a former pupil of Ysgol Gyfun Bro Myrddin and remains fiercely loyal to his local roots.
Speaking about his new contract with the Scarlets Rhys Priestland said: "I'm really pleased to secure my contract with the Scarlets going forward and continue my commitment to rugby in Wales."
"As Scarlets we want to push on next season, we have some exciting players to make that happen and drive us forward and I want to be part of a team that takes that ambition and helps makes it become a reality for our Region. With players like Scott and Reggie (Regan King) in our squad we have some world-class talent in our team along with some of the most passionate support in world club rugby."
"The Scarlets is where I've developed as a rugby player and have been supported since I first started playing - with some good coaches and experienced senior players helping me in my career."
"It's important to me to continue my commitment to a great rugby community, environment and team that I am proud to be a part of. We have a very strong team ethic at the Scarlets, we're a tight group. It's good to belong to an environment that means a lot to me as an individual and has a real heritage and tradition as well."
"I'm pleased to have this all decided now, so I can focus on our Six Nations rugby campaign before returning back to the Scarlets for what should be an exciting finish to the league season."
Scarlets Head Coach Simon Easterby said it was an important signing for the Scarlets.
"Rhys has become one of our most experienced players and has a lot to contribute to the region on and off the field. He's a key figure in our squad, an intelligent rugby player who thinks quickly, reads a game well."
"A lot has been said about how to retain our best players in Wales; and while market forces can be difficult to battle at times, there is another dimension to this discussion and that's about creating a regional rugby environment and culture that engenders loyalty, motivation and drive in players with the support to succeed."
"It was really important to us all to keep Rhys and other players at Parc y Scarlets - our supporters will be delighted too as he is a popular local player. We are delighted that someone of his ability, experience and with genuine passion for our region, has committed to remain with us."
Priestland who developed in Scarlets rugby alongside Stephen Jones, also represented Wales at Under 19 and Under 20 levels and won his first full international cap during the 2011 Six Nations campaign in the 24-6 win against Scotland as a second-half replacement.
He was called up against England in a World Cup warm-up match in August 2011 and established himself as the first choice number 10 for Wales at the 2011 Rugby World Cup and the Grand Slam winning 6 Nations team of 2012.