Davies, who has appeared 83 times in a Scarlets shirt with an impressive 30 tries to his name, has committed to another two years at the region and will remain a Scarlet as part of one of the most exciting and accomplished back divisions in Europe.
A significant contract signing for the Scarlets, Davies, 23, is one of a number of young players who have come through the Scarlets development system with Davies starting out his regional rugby career as part of the Scarlets Academy aged 18.
He, like handful of his Wales and Scarlets colleagues including George North, Rhys Priestland, Scott Williams, Ken Owens, Rhodri Jones and Liam Williams, are examples of the rugby development system working in Wales.
Davies, was bred in the Scarlets region having grown up in Bancyfelin, near St Clears in Carmarthenshire and played his first rugby at Whitland - also the rugby roots of Wales colleagues Mike Phillips and Scott Williams.
Scarlets Head of Rugby, Nigel Davies said: "I think given the current climate, this says a lot about Jon's values as an individual and ambitions as a player and his belief and commitment to our Scarlets squad and rugby environment. It was important to Jon to stay in Wales and he wanted to further his career within our set-up as somewhere where he knows he will play a crucial role going forward.
"He's hitting some of the form of his career currently and as a player he'll push on now with more experience to gain. He's worked hard and he deserves credit what he's achieved already in terms of his commitment, talent and work ethic as a player. He is a great talent with plenty more to give - so it's exciting that he's staying in Wales for club and country."
Nigel Davies said the young centre talent was a key part of the jigsaw in the make-up of the Scarlets squad next season and beyond. "We're obviously delighted that we signed a new deal with Jon, it's been in our planning for sometime and is part of our ongoing rugby strategy to retain our Welsh talent and importantly maintain consistency and continuity, where possible, in our team."
On his extended contract with the Scarlets Jonathan Davies said: "I'm delighted to be staying at the Scarlets - the region has done a lot to support my rugby career to date and it's where I feel at home as a player and where I feel I am best placed to further my ambitions both at regional and international level.
"There's great team ethic, the Scarlets boys all work hard for each other and we're a close-knit group because so many of us have come through the ranks together from within the region. There's a strong and ambitious spirit in this team and we know what it means to wear the Scarlets shirt, given our great heritage. Our style and brand of rugby suits me as a player and I'm just looking forward to being part of an exciting set of Scarlets backs next season.
"We have a first-class rugby environment at Parc y Scarlets to train and play at and I'm just pleased to be staying and grateful to the coaches for the opportunities and support I have been given to date and look forward to an exciting 2012/13 season in the jersey."