Davies impressed as he scored a try during Ospreys’ impressive 36-14 triumph over Scarlets in the last-16 of the European Challenge Cup last weekend.
He has featured 69 times for Ospreys and made his international debut for Wales against Scotland in the 2023 Six Nations.
“I think I can speak for everyone at the club, and our supporters, when I say how happy we are that Rhys has committed his future to the Ospreys,” said their head coach Mark Jones of the three-cap Wales forward.
“He had a tough time out with injury, but he was incredible on his return last time out.
“That personified the work he’s done behind the scenes to get back, and the work of our medical and strength and conditioning team.
“Rhys is a real difference maker for us, whether it’s at set piece time, or in the loose, and he showed that on the weekend.
“We’re excited to see how he builds on that and by what the future holds with Rhys in an Ospreys jersey.”
