Dan Lydiate will go back to where it all began after signing a deal to return to the Dragons.
The Ospreys couldn't afford to retain the services of the 35-year-old, with financial constraints at all four Welsh regions meaning teams have no choice but to live within their means.
But the Ospreys' loss is the Dragons' gain, with Dai Flanagan swooping to sign the 69-times capped Wales blindside.