The 23-year-old centre, who has excelled in this year's RaboDirect PRO12 and Six Nations, has gone against the recent grain, opting not to follow the likes of Gethin Jenkins, Huw Bennett, Luke Charteris and Aled Brew onto the continent.
?His decision to recommit to the Scarlets is a welcome boost for the regional game, coming a month after Adam Jones penned a fresh deal with the Ospreys.
And Davies, who reportedly turned down a lucrative move to Northampton Saints, believes he is better suited to staying put for now.
"The boys who are leaving are probably more experienced and have more rugby under their belts," Davies told the South West Evening Post.
"But I'm at the stage of my career where I haven't developed yet.
"I think it was key for my development to stay in Wales and make sure I keep working hard and cementing my spot in the team.
"The best place to do that is the Scarlets because of the exciting back-line there. That's where I'll get the best relationship with the coaches and stuff.
"I'm glad it's sorted and I'm really happy I've been able to stay."
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