Gustafson joined the region in 2007 from the Scarlets after captaining the Wales Under 20's in the 2007 Six Nations and with over 50 appearances for the Men of Gwent, he is a valued member of the Dragons squad.
"I'm really pleased to have re-signed with the Dragons," said Hugh. The Dragons have given me the opportunity to get a lot of pitch time which has been great. The team ethos is very strong and I am really enjoying my rugby.
"We have an excellent coaching team here - to be able to learn from a British and Irish Lion in Colin Charvis is a great opportunity and I feel I have developed a great deal as a player since I arrived here. Darren Edwards has also helped me a lot with developing my individual skills and I think there are good things to come both for the region and for me as a player."
In addition to his success on the pitch, Hugh has also shown great coaching promise as part of the coaching team for the regional Under 16 side alongside rising stars Jason Tovey, Lewis Evans and Danny Lydiate
"I am delighted to have secured the signature of Loose Head Prop Hugh Gustafson on a 2 year extension to his current contract," said Dragons Rugby Manager Robert Beale.
"Hugh has qualities that I personally admire in a young man and have no doubt that Hugh will figure in the plans at Rodney Parade for many years to come."
The loosehead joins fellow players Aled Brew, Wayne Evans, Martyn Thomas and Tom Riley who have all recently agreed two-year deals which will see them remain at Rodney Parade until the end of the 2012 season.
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