Dan Biggar's decision to renew his national dual contract is "fabulous" news for Wales and Ospreys, according to Martyn Williams.
The 26-year-old fly-half has agreed a new deal which could keep him in Wales until the 2019 World Cup.
Williams, who played 100 times for Wales, believes it will help Ospreys keep and recruit players.
"It's fabulous news for Welsh rugby and the Ospreys in particular," he said on BBC Wales' Scrum V TV programme.
"Not only is Dan committing himself to Wales for the next four years, but it helps the Ospreys with recruitment for the next couple of seasons.
|Wales' dual-contracted players|
|Cardiff Blues: Sam Warburton; Gareth Anscombe.|
|Ospreys: Alun Wyn Jones; Dan Biggar; Dan Lydiate; Rhys Webb; Scott Baldwin; James King; Rory Thornton; Dan Baker.|
|Scarlets: Jake Ball; Scott Williams; Samson Lee; Rhodri Jones, Jonathan Davies (from summer 2016)|
|Newport Gwent Dragons: Tyler Morgan; Hallam Amos.|
"If players were looking to sign and come to the Ospreys if they can see Dan Biggar is going to be there for the next three or four seasons that helps them as well."
Biggar's current deal was due to expire at the end of this season.
He is the first of Wales' 17 dually contracted players to re-sign on the deals which are 60% funded by the WRU and 40% by the region.
In addition to potentially attracting new players to the region, Biggar's decision to stay may help negotiations with his Ospreys and Wales colleagues scrum-half Rhys Webb and second row Alun Wyn Jones.
Both players' contracts expire in the summer of 2016, with Ospreys skipper Jones saying in November that he was still weighing up his options.
Scarlets are in talks with Wales centre Scott Williams over extending his dual contract, and have secured the return of British and Irish Lions centre Jonathan Davies from Clermont Auvergne next season.