Edwards would have been ineligible for Wales had he left to play in England because he has only played seven Tests.
The current WRU selection policy deems that individuals who sign for clubs outside Wales must have 25 caps to continue playing for their country.
Edwards, who started out at Cwmafan RFC, is poised to pull the strings for Steve Tandy’s side in the Six Nations after committing to Ospreys.
“Like a lot of the boys here, I grew up supporting this club and it was always a dream for me to pull on the black jersey,” said the fly-half, who will make his 43rd appearance for the club at Zebre in the Challenge Cup on .
“There’s a quality group of boys here. We’ve got a young core that play above their years and some experienced boys that bring it all together for us.
“We’ve shown that when we’re on our game, we can go toe-to-toe with anyone on our day.
“The staff and players here all want the Ospreys to be back where we should be, competing with the top teams and challenging for silverware. So if I can play a part in that, that is something that I will strive to do.”
Nonetheless, Ospreys’ future remains uncertain amid rumours that owners Y11 Sports and Media are in talks to buy WRU-owned Cardiff.
Such a move would help the governing body – who will honour existing contracts and also guarantee new contracts signed by players of national interest – reduce to their desired three professional men’s clubs.