The 28-year-old midfield ace was injured in the opening Guinness Six Nations tie against France in Paris, but has now followed in the footsteps of Jac Morgan, Dewi Lake and Gareth Thomas in putting pen to paper on a new deal with his only professional club.
“I’m delighted to be extending my time with the Ospreys. This is an ambitious club, full of ambitious players, all trying to push each other to be the best version of themselves,” said the 43-times capped Watkin.
“I’ve spent my whole career at this club, and what has always been a key determiner for me in that is the atmosphere. Coming to work every day here, with the boys we have, is a privilege.
“I was gutted to have picked up an injury on Wales duty, but I’m looking forward to returning and pulling on the black jersey with some of my best mates.”
Watkin has featured 121 times for Ospreys and played in all five matches as Wales secured a Six Nations Grand Slam under Warren Gatland in 2019.
“Owen is another excellent example of our successful pathway programme, not just from a playing viewpoint, but from a character perspective also,” said Ospreys head coach Mark Jones.
“Having a centre that’s as influential on both sides of the ball as he is, is crucial in modern rugby. We’re really happy that he sees his future at our club.
“We see Owen as an important piece of our puzzle going forward, especially from a leadership perspective, so it’s great for us to have secured his signature.”