The 31-year-old centre has been in outstanding form this season, and has captained the side in the absence of Jonathan Davies. Capped 58 times for his country, Williams has made 146 appearances in a Scarlets jersey since making his debut in 2009 and was a member of the PRO12 title-winning team of 2017.
“Scott has been outstanding for us since his return this season,” said Peel. “He is a player who leads by example and his performances have shown how much playing for the Scarlets means to him.
“He is a player who still has a lot to offer at the top of the game and it is fantastic news that he has committed to the Scarlets.”
This is Williams’ second spell at Parc y Scarlets having also spent three seasons playing for the Ospreys before returning to Llanelli last summer.
“The Scarlets have shown a lot of faith in what I could do by bringing me back here and I want to repay them for giving me that chance,” said Williams.
“We haven’t had the results we have wanted so far this season, but it feels like we are building something under Dwayne and I am excited by what can be achieved by this group in the next few years.”
