New Zealand fly-half Dan Carter has signed a new deal with Canterbury Crusaders until 2011.

Carter had been linked with a move to fellow Super 14 franchise the Auckland Blues in recent weeks, but has decided to remain at his home-town club.

"We are absolutely delighted to be able to re-sign Dan until after the next Rugby World Cup," Canterbury chief executive Hamish Riach said.

"While there has been intense media speculation about Dan's future provincial union, our discussions have been positive and constructive throughout and have lead to this agreement today.

"Dan is obviously a world-class player and it will be fantastic to have him back. It is quite simply tremendously good news for all who care about Canterbury and Crusaders rugby."

Carter missed the Crusaders' recent Super 14 campaign with an Achilles injury he suffered while on a 'sabbatical' with French club Perpignan in January.

The 27-year-old managed just five games after signing a lucrative short-term deal with the French club and will likely miss the upcoming Tri-Nations series.

He returned to New Zealand last week amid intense speculation he had played his last game for the Crusaders, but after today's announcement he revealed he was content to stay at the seven-time Super Rugby winners.

"Christchurch has always been home for me, so it's great to have re-signed with Canterbury rugby through to 2011," he said.

I'm looking forward to playing in a red and black jersey again and being part of the province that has given my rugby so much."