This follows the recent announcement that the Wales centre, Scott Williams, is also to remain with the Scarlets under a new player contract.
Priestland has won 27 caps for Wales scoring 56 points and is a current member of Warren Gatland’s 2014 RBS 6 Nations Wales squad.
The decision of Rhys and other key players to commit to Welsh Regions is being seen as a positive signal for the game in Wales at a time when lucrative offers are being made for players to move abroad.
The WRU remains cautiously optimistic that discussions related to the agreement of a European cup competition format for next season are nearing resolution.
The WRU and the Regions are currently negotiating a new Rugby Services Agreement which will include terms for player welfare and release for international duty.
The WRU has declared the governing body is prepared to negotiate National Contracts with key players the Regions have been unable to negotiate renewed contracts with, so they can remain in Wales with their Region.
WRU welcome Priestland deal
The Welsh Rugby Union is delighted that another key international player has committed his future to a Welsh rugby Region.
