Turner is in his third season in charge at Rodney Parade
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Paul Turner has signed a contract extension to remain as Newport Gwent Dragons coach until May 2010.
Turner told BBC Wales Sport last week he was ready to sign a new deal after receiving assurances over the board's commitment to spend on new players.
He said: "I am aware of the financial constraints we face, but we are developing plans to blend our exciting emerging talent with some experience.
"I am proud of what we are doing here at the Dragons."
He added: "The coaching team and myself have worked hard to develop local talent and I am glad that I have been given the opportunity to continue this development.
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"These are exciting and opportune times for the Dragons and I am delighted to be a part of it."
The Dragons lost Wales internationals Ian Gough, Gareth Cooper, Aled Brew and Nathan Brew last summer and Turner admitted the region could not compete financially with their rivals as they searched for suitable replacements.
Turner faces losing more key players at the end of this season, with fly-half Ceri Sweeney and versatile forward Michael Owen, both out of contract at the end of the season, linked with moves away.
The new stadium development is set to drain more resources away from squad strengthening, but Dragons chief executive Gethin Jenkins says all with be done to support Turner's player recruitment drive.
"We have discussed at length what we are trying to achieve and Paul understands the financial position we have to work within," said Jenkins.
"This is especially in light of the exciting regeneration project the ground will undertake in the next two years.
?We will now work with Paul to retain and recruit new players as we build on these plans and head towards the new stadium.
?I thank Paul and his team for their work so far in developing the squad and providing the opportunities for Welsh talent to emerge.
"I trust that this development will continue as we plan and build towards the new stadium."
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