London - Wales flanker Dan Lydiate on Tuesday signed for Ospreys to become the second player after national captain Sam Warburton to seal a national dual contract between the Welsh Rugby Union and the regions.
Lydiate, who was released from Racing Metro before playing in Wales' November internationals, headed the list of 12 players who have been offered National Dual Contracts and more signings are due to take place from that list shortly as negotiations advance.
Under the terms of the Rugby Services Agreement players returning to Wales are expected to return to their Regions of origin but the 26-year-old Lydiate has chosen to join the Ospreys principally for family reasons and has personally discussed the move with his former Dragons employers.
"I am delighted to have secured a National Dual Contract and I am looking forward to doing my best for the Ospreys while I aim to win selection for Wales," said Lydiate, who will be available for selection after the weekend.
"Having a National Dual Contract gives me the certainty I need for my future and I will now be able to concentrate one hundred percent on my rugby.
"I enjoyed my time with Racing Metro but this is the right move for me as I want to achieve my full potential as a player based here in Wales."
Wales coach Warren Gatland added: "This is an important step forward for Welsh rugby and will reap rewards in playing standards over the long term.
"Any player on a National Dual Contract will remain in Wales with a Region where their development and welfare can be monitored by me and my national squad coaches and conditioners.
"I want to personally thank the staff from each of the four Regions for their help in getting the National Dual Contracts up and running.
"We can now focus on ensuring all our best young players realise the best way for them to realise their talent in full is to stay in Wales under the new structure we have created."
Lydiate has been capped 41 times by Wales and featured in all three Tests for the British and Irish Lions in the victorious 2013 tour of Australia.
He made his Six Nations debut in 2011, helped Wales to a Grand Slam in 2012 and also won the Player of the Tournament title that year.