Moffett, who became the union's first chief executive in October 2002 will oversee the 125th birthday celebrations in 2005/2006 and Wales' challenge for the 2007 Rugby World Cup.

WRU chairman David Pickering said: This is excellent news for the WRU, Welsh rugby and all our stakeholders.

What we are seeking to achieve is long-term stability within our game and we feel that David Moffett has demonstrated on all fronts the qualities we need in our chief executive.

Moffett said: This was a very easy decision for me to make. We are a short way on a long journey and I want to continue with that journey. Ever since I started my job in Wales, people have been asking me when I will be leaving.

I hope that by committing myself to Welsh rugby until 2008 I will be able to convince everyone that I'm in this for the long haul and that I'm relishing the challenge.