Fan favourite Cudd, who has made 130 appearances for the region since his debut in 2012, has put pen to paper on a new one-year deal to continue his successful association with the region.
The 30-year-old will also be part of the Academy coaching set-up as he continues his recovery from a knee injury sustained last season.
“I’m really pleased to sign the new contract and looking forward to continuing to give everything I have for the Dragons,” said Cudd.
“I’ve had fantastic support from the region throughout my rehabilitation and I can start looking forward to a playing return.
“It’s a new beginning for all of us with the appointment of Dean Ryan and there is a real buzz around the squad as everyone looks to impress.
“My recovery is going well and I can’t wait to pull the jersey back on and get back out on the field with my team-mates.”
Carmarthen-born Cudd has been a hugely popular figure at Dragons since moving to the region in 2012 from Scarlets.
The forward, renowned for his all-action and dynamic playing style, has Wales Under-16s, Under-18s, Under-19 and Under-20s.
Forwards Coach Ceri Jones said: “We’re all thrilled that Cuddy is staying with us.
“He’s a player who comes off the field with battle wounds every weekend, is ultra-competitive in everything he does and wears his heart on his sleeve.
“Cuddy has become a core part of the group and really is the complete professional, week in and week out.
“He continues to work extremely hard on his rehab and we’re all looking forward to welcoming him back in the coming months.”
Meanwhile, Dragons have confirmed that prop Nicky Thomas has left the region with immediate effect.
Thomas, who made eight appearances over two seasons, leaves with our best wishes for the future.