After yesterday's commitment to effectively play out the rest of his career in Ireland, Irish captain Brian O'Driscoll is set for a tax windfall when he finally retires from the game of rugby.

The world class centre yesterday signed up with the IRFU until 2011, which will bring him into the twilight years of his career at 31-years-old. The four-year contract for a player of O'Driscoll's international stature is, according to agents, likely to be worth between €350,000 and €400,000 a year and will be further boosted by the 40 per cent tax rebate that athletes are entitled to under the 2002 tax legislation introduced by the then Minister for Finance, Fianna Fail's Charlie McCreevy.

O'Driscoll's salary is in addition to earnings he makes off the pitch, which include endorsements, advertising and promotional work. But the tax rebate that he is entitled to, when he officially retires, pertains only to the income that is directly related to his rugby playing. As well as his IRFU salary, that would include any match fees and win bonuses built into the contract but not the off-field earnings.

O'Driscoll's previous agreement saw him commit to Ireland and his province until the end of the World Cup in 2007 and came in the wake of the Irish captain being photographed around Biarritz and presenting prizes at the French club towards the end of his previous IRFU contract. Agreeing now to an extended deal with Ireland almost a year before the World Cup begins in France will diffuse any further speculation that he might be tempted to play overseas.

It also means that his 40 per cent tax rebate will hold as money can only be reclaimed from the Irish Revenue if a player is resident in Ireland for each of the years in which he wishes to claim back tax.

Players are entitled to make a claim in the year they retire as well as any nine years previous to that going back to 1990-91.

If the Irish captain earned €4 million over 10 years, he would initially pay tax on the entire amount at the top rate of 42 per cent. However, on retirement he would be given back the tax he paid on 40 per cent of the income, or €1.6 million. He would not get back €1.6 million but the tax that he paid on that amount, approximately €672,000, would be returned.

"When I sat back and thought about it, it was not a difficult decision to make," said the 27-year-old on staying in Dublin. "I have spent my entire professional rugby career with Leinster and it has always been an honour and a privilege to wear the blue jersey. I am happy with the coaching set-up we have here and when you look at the quality of players in our squad, I did not see any reason to leave. We have set ourselves goals for this season and beyond and I want to remain part of those plans for the future."

O'Driscoll has won 65 Irish caps and was voted as the player of the tournament in this year's Six Nations. He was also chosen to captain the Lions on their tour to New Zealand in 2005 but was controversially spear-tackled and injured in the opening minutes of the first Test.

"The policy of the IRFU has always been to endeavour to keep our leading players in Ireland where their well-being can be carefully managed," said IRFU chief executive Philip Browne.

"The news of Brian's commitment comes at a very important time as we build to next year's Six Nations and the rugby World Cup."

The decision to remain playing in Dublin may also prolong the centre's career as the IRFU will protect him from over-playing and from competing when not fully fit.

Playing in France can be lucrative but the number of games clubs play between the French Championship, the Heineken European Cup and international commitments would far exceed the approximate 25 games a year he currently plays while contracted to Ireland and Leinster.

English clubs have also been complaining about the number of matches their top players are being asked to play, especially in a World Cup year, where the number of international matches increases with no reduction in commitment to the Premiership or Heineken Cup.

"Brian's decision to commit his long-term future to Leinster rugby is great news for the team and all of our supporters," said Leinster chief executive Mick Dawson.

"To have a player of Brian's standing and ability making such an important decision shows that he shares our goals for the future. This announcement is an important step to building on last season and I am sure I speak for all Leinster fans when I say I am delighted at this news."