23-year old Peers becomes the 12th Osprey to do so since the start of 2014, signing a three year deal which runs until the end of the 2016/17 season.
A natural leader, Peers came through the development pathway at Bridgend Athletic, going on to captain Bridgend College and the Ospreys and Wales at age-grade level, before taking the armband at Bridgend Ravens in the Premiership.
His regional debut came against Exeter Chiefs in the LV Cup in November 2011, since when he has notched up 35 appearances in an Ospreys shirt. 2012/13 was his breakthrough year, when he featured in 20 games including the Heineken Cup double header against French giants Toulouse. Having again been a regular in the match day 23 this season, Peers is currently sidelined with a shoulder injury sustained in the 75-7 win over Treviso at the Liberty Stadium in February.
Speaking after signing his contract, Peers said it had been an easy choice to commit to the region for another three years.
"It wasn't a difficult decision to make, it was a case of getting the contract signed as soon as possible" he commented.
"It's been a frustrating season for me, picking up a couple of injuries on the bounce when I was looking to build on what I achieved last year. I was fortunate enough to play a lot last season, including big European games, but this season has been a lot more stop-start for me. When I've been fit I've been involved which is great but, like I said, it's been pretty frustrating.
"I'm looking forward to next season now. I'm working hard and everything is targeted to getting back as fit and as strong as I can, and with my new contract hopefully it'll be a good year for me. I'll be looking to take any chances that come my way early in the season. With the competition for places that's important, you have to take your chances.
"If I keep working hard I'll continue improving and, hopefully, be able to cement my place in the team."
Peers is the 12th player to have signed a new contract with the Ospreys since the turn of the year, and he follows on from Alun Wyn Jones, Sam Lewis, Ashley Beck, Eli Walker, Jonathan Spratt, Ben John, Ryan Bevington, Dmitri Arhip, Nicky Smith, Dan Baker and Dan Suter.
Andy Lloyd, Rugby Operations Manager, said that Peers is a player who will play an integral part in any future Ospreys success:
"Lloyd is a huge team man, entirely selfless and is developing into a leader on and off the field. There is a big future for Lloyd at the Ospreys and he is key for us going forward.
"He's a very physical player, and when he is on the field he gives everything he's got, knows his role, and is an example to others. Away from the pitch he is intelligent and a real thinker, someone who always represents both himself and the Ospreys in the right way.
"We've missed him for large periods of this season which has been disappointing for both Lloyd and for the Ospreys but we see him as playing a big role in the future of this region."
In addition to the 12 players who have re-signed for next season, the Ospreys have also announced four new signings; South African second row Rynier Bernardo from Eastern Province Kings, Fiji and Worcester centre Josh Matavesi, Wales and Dragons full-back Dan Evans, and his colleague at Rodney Parade, hooker Sam Parry.
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