Waratahs captain Phil Waugh will re-sign with the ARU this morning.

The Wallabies breakaway is off contract with NSW and the ARU but it is understood he came to terms on a deal last night. There were reports yesterday he had re-signed with the ARU and NSWRU, but it is believed final negotiations involving a third-party sponsorship needed to be clarified before the deal could be confirmed.

Waugh, 29, who has said he wants to continue playing in Australia and claim the Wallabies No.7 jersey, has been courted by a number of European clubs. It is believed he has opted for a two-year deal so he can continue to pursue an elusive Super 14 title and a position in Australia's World Cup team in 2011.