ONLY months after he was found painting houses, Josh Dugan has inked his signature on a $2.8 million, four-year contract with St George Illawarra.

In one of rugby league's great redemption stories, Dugan on Friday knocked back a lucrative offer from Canterbury, saying he was determined to "repay the faith" shown by a Dragons club that plucked him from NRL exile.

Signing a deal worth an estimated $700,000 a year, the fullback who was sacked by Canberra and then overlooked by Brisbane said it was the Red V lifeline that had returned him to State of Origin on-field and "a stable life" off it.

"St George Illawarra gave me a chance and I made Origin from that chance," Dugan said.

"That's the reason for (re-signing)... I've been given an opportunity and I'm looking to repay the faith.

"I'm loving my time here and I want to help build a good culture. St George Illawarra have really looked after me. They've steered me in the right direction, led me down the right path… I've got a stable life."

The Daily Telegraph understands Dugan, who also became a father for the first time last week, was initially expected to sign the contract midway through July.

However, his management team were caught debating several clauses and certain legal language.

Another sticking point was that the Dragons had, in the first instance, offered a three-year deal while Dugan was pushing for four.

Dragons CEO Peter Doust conceded the negotiations had been "complex", but added the No.1's signature was a tremendous addition to the club.

The new deal, which keeps the star fullback at the club until the end of 2017, also snuffs out a move by the Bulldogs to sign the flyer as a potential replacement for troubled star Ben Barba.

Interviewed on the Dragons website, Dugan described Origin as "redemption", the birth of his first child "life changing" and said it was an honour to now focus long-term with the club he had followed as a child.

"As a youngster I grew up supporting St George, so to play for them was a dream come true," he said.

"Everyone here is so welcoming. They've made me feel welcome, made my family feel welcome.

"I'm studying a Certificate 3/4 in fitness then I'm looking to do a social workers course. I'm loving it here."

Still only 23, Dugan made his Dragons debut against Parramatta in round 10.

Additionally, the two-time NRL All-Star was selected as fullback for the NSW Blues for the second and third games of the State of Origin Series after just four games with the Dragons.

Dragons Head Coach Steve Price said he was delighted the fullback had re-committed and praised the way he had transitioned into squad.

"Josh is a very talented player and I am pleased that he will continue being an important part of the team for at least the next four seasons," Price said.

"His attitude and commitment to our club since arriving has been fantastic. His contributions to the team in games and at training has added great value to our squad."

Dragons CEO Peter Doust added: “Josh is a unique rugby league talent and his commitment to our Club has been extremely positive since he arrived.

"Not only has Josh contributed positively on the field, he has shown a real desire to work in our Dragons Community programs and has commenced further education.

"Josh has been very happy since he arrived at our club and indicated very early that he was keen to extend his stay."