"I had offers to go elsewhere but after considering all my options, I decided to continue my career with the Scarlets," said Jones. "I'm delighted to have signed for the Scarlets. I am an ambitious player and the Scarlets are an ambitious side. I've always been a Llanelli fan and always been a Llanelli player."
Jones made his Llanelli debut against Leeds in February 1997 and went on to play 85 games for the club, scoring 14 tries in the process. He has added 85 appearances for the Scarlets region where he has scored nine tries, the last one in last Saturday's defeat by Leinster.
The 1.98m, 108kg flanker has been capped 29 times by Wales but hasn't played for his country since 2006 when he came on as a sub against France.
"I've still got huge ambitions to play for Wales again," said Jones, who played in the 11-9 success against England in 2005 only to miss the rest of that campaign with injury.
"I feel good, I'm happy with myself and I'm enjoying my rugby. It was great watching the boys win the Grand Slam. Knowing what it's like to be in the squad, I couldn't be happier for them," said the Aberystwyth-born flanker.
"But for the mean time I just want to concentrate on my rugby and be part of a successful regional team. If I'm playing well enough then hopefully I can push my international claims," he added.