All Blacks five-eighth Dan Carter has signed a new contract with the Crusaders until the end of 2011, chief executive Hamish Riach said.

"We are absolutely delighted to be able to re-sign Dan until after the next Rugby World Cup," he 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 said he was happy to have made his decision.

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

Carter had been on a sabbatical playing rugby with French club Perpignan where he sustained a Achilles injury at the end of January.

He returned to New Zealand earlier this month and expects to resume playing rugby again in August.

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