The introduction of a Welsh salary cap next term and the previous departures of fellow Lions James Hook, Mike Phillips and Lee Byrne led to suggestions Jones would leave the Liberty Stadium outfit but the 30-year-old has instead decided to stay put.
"This is where I always wanted to be next season and now it's all done, I just want to get on with the job, which is to help the Ospreys be the best we can be," said Jones, who featured in Wales' 6 Nations win over Ireland yesterday and has committed himself to his current club for a further two years.
"We spoke at length about the direction the Ospreys are taking, with the changes that are taking place, and I'm genuinely excited about the future, for the region and for myself personally.
"I can understand that fans may be frustrated at the moment but I genuinely think we are going in the right way. It's important that we have everyone going in one direction together, with youngsters and older players alike understanding that we're in this as a team.
"I've been a part of the region for a long time, first at Neath and then with the Ospreys, and although I've done a lot of things there is still plenty I want to achieve with the Ospreys. I'm still ambitious, as are the Ospreys, and I'm excited about what we could achieve together over the coming seasons."
The news is a boost for the Lions who now know that Jones will be free to take part in their full pre-tour training camp if selected.
Jones had been heavily linked with a move to France and had himself admitted that it was an option he was definitely exploring.
Such a switch could have left his availability for the Lions' training camp in doubt as the French season lasts longer than the RaboDirect PRO12 and the Aviva Premiership.
The likes of Gareth Thomas and Stephen Jones experienced difficulties after being based in France ahead of the 2005 tour and Nathan Hines frustrated French supporters by choosing training with the Lions above a play-off game for Perpignan in the spring of 2009.