NEWPORT Gwent Dragons have beaten the Ospreys to retain the services of one of Wales’ most exciting young players in Steffan Jones on a two-year deal.

The outstanding 20-year-old back has decided to stay at Rodney Parade after the Liberty Stadium big spenders swooped to try and prise him away.

The Bargoed product flourished during an excellent season at outside-half in the Premiership after signing for Cross Keys, scoring 338 points in 26 games.

A Dragons development player last season, he made a spectacular Magners League debut out of position at full back in the Gwent region’s memorable 28-15 victory over Cardiff Blues in April.

Jones scored a superb individual try to calm the nerves in the opening minutes of the match before slotting over a monster penalty near the end to seal the win.

"I’m very pleased to have signed a two-year deal for the Dragons, over the moon," Jones said.

On being asked why he had chosen the Dragons over the Ospreys, he replied: "I was happy to have been playing for the Dragons and am looking forward to a great opportunity with the region next season."

Jones has previously spoken highly of Dragons head coach Darren Edwards and of the region’s famous camaraderie.

"The boys have made me feel really welcome and we are a close-knit squad with a great team spirit," he commented.

Meanwhile, Toulon have refused to offer a new contract to Gavin Henson who has been linked with a possible move to the Dragons.

No one was available to comment at Rodney Parade yesterday whether they were still interested or not in the Wales centre who won the Grand Slam in 2005 and 2008.

But one place Henson does not seem likely to end up is Swansea and a return to the Ospreys after a source revealed he wasn’t one of their targets.

Henson is due to make his international comeback next month when Wales entertain the Barbarians next month at the Millennium Stadium.

Toulon revealed financial constraints and probable international commitments underpin their refusal to offer Henson a new deal.

He joined the Top 14 club in February and recently served a one-week suspension for a nightclub brawl with teammates.

The 29-year-old was waiting to discover whether he would be welcomed back next season, but Toulon have dashed his hopes of returning to the glamour club on the exclusive Cote d’Azur.

Reports in France yesterday morning suggested that Henson had paid the price for the run-in with his teammates, which was sparked by critical comments he made of Jonny Wilkinson.

Team manager Tom Whitford has stated that financial restrictions in place at Toulon and Henson’s likely involvement in this autumn’s World Cup have resulted in his departure. "The problem is we haven’t qualified for Europe this season," Whitford said.

"That means our budget is going to be restricted, which means we’re slightly limited in our salary budget – that’s one reason.

"The second reason is we hope from his point of view he’s going to be picked for the World Cup to play for Wales."