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Wales fly-half Sam Davies insists he will stay at Dragons despite speculation suggesting he could leave.

Davies, 26, was reportedly unwilling to accept the 25% pay cut Dragons and Scarlets players have agreed to take, due to the financial impact of the coronavirus pandemic.

But the former Ospreys player, who has a year left on his two-year Dragons contract, has denied those claims.

"I'm extremely happy here, I'm really enjoying my rugby," said Davies.

"There's no reason to leave and I'm looking forward to see what the future holds with the Dragons."

Last week, Dragons director of rugby Dean Ryan allayed fears about losing Davies and he made him captain for Sunday's Pro14 20-20 draw at Ospreys.

Ryan said Davies was one of the players going through the "implementation process", which followed the pay cut negotiations Wales' regions held with the Professional Rugby Board.

Davies, who has won eight caps for Wales, echoed those views.

"There will be a negotiation taking place soon and that's when the decision will come," he added.

"I don't want to make my decision too early. I've still got ambitions to play for Wales.

"I'm extremely happy at the moment. We're building something special and we'll see what comes."