The 23-year-old has made nine appearances so far this season, featuring off the bench in the European Champions Cup clashes against Northampton and Racing 92.
Competition for the number nine shirt is tough at Parc y Scarlets, with Gareth Davies and Rhodri Williams on the books, but Davies is delighted to have committed his future to his home region.
“I’m really pleased to extend my contract with the Scarlets,” he said. “I’ve been a part of the region since the age of 15 and before that I was a supporter watching from the stands.
“This is my home region and it’s a huge honour to pull on the jersey that has been worn by some fantastic players over the years.
“The competition for the scrum-half position has helped me immensely over the last few years and has encouraged me to work harder and continue to improve my game. I’m now looking forward to continuing in that vein and help the Scarlets remain in the top four of the Pro12.”
Head coach Wayne Pivac added: “We are delighted to see Aled committing his future to the Scarlets. He is a local lad and is clearly very proud to represent his home region.
“He made great strides last season, making the number nine shirt his own, and has continued his form into this season. At 23-years-old he is still very young and has years ahead of him.”
