Wallabies flanker George Smith has re-signed with the Australian Rugby Union for another two years, turning down lucrative offers from European clubs to commit himself to the 2011 World Cup.

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Smith, who needs four more appearances for the Wallabies to reach 100 Test caps, said the lure of the World Cup in New Zealand and lifestyle were the key factors in his decision to remain in Australia.

"It's a combination of all those things," the 29-year-old said. "I was never looking at this as being a straight financial decision."

Smith is the latest in a procession of southern hemisphere players to reject lucrative overseas offers and ARU general manager John O'Neill said it was proof countries like Australia and New Zealand could match the opportunities in Europe.

"We have re-signed a number of leading players in the past couple of weeks, despite cynics suggesting we were moving too slowly or offering them less than their worth," O'Neill said.

"We still have a number of players we want to lock down for the next rugby World Cup. However, there is no doubt the Wallabies are taking shape for the future."