The 22-year-old made his debut for the region in 2013 against the Scarlets in the Anglo-Welsh Cup and has made 61 appearances for the senior side.
Morgan, who is a Dragons Academy product, played eight times for Wales at Under-20 level and was named in the Wales 2015 Six Nations Championship squad and for that year’s Rugby World Cup campaign.
He made his full international debut for Wales in August 2015 against Ireland and played in the World Cup quarter-final defeat to South Africa.
Morgan said: “I have signed for the Dragons because I want to be an integral part of the side developing and I’m desperate to make history with my home region.”
The youngster is looking forward to next season with the Dragons and is positive about the future of the Men of Gwent.
“I am confident that the Dragons’ future is bright, the region has been turned on its head this year, but now we are all heading in the same direction with the same goal,” said Morgan.
“My personal goals are to improve my game at the Dragons, to stay injury free and help take this team to success. Wales is always the ultimate goal, but that only comes with success at the region.”
Dragons head coach Bernard Jackman added: “Tyler is the latest of our pathway players to commit to the next stage of the Dragons future.
“I enjoyed seeing him train and play in the early part of the season before his injury when he showed what a talent he is.
“His drive and professionalism in his rehab is outstanding and we are looking forward to helping him fulfil his potential.”
Morgan is currently out injured after undergoing surgery on a foot problem but hopes to be back fit for the start of next season.
