The Wales flanker is now under contract at the Liberty Stadium intil 2018 after signing fresh terms with the club - the 25-year-old having been linked with moves to France and England of late.
Leicester Tigers and Toulouse were mooted as potential destinations for the British and Irish Lions international, but Tipuric spoke of his delight at being able to return his focus to playing rugby.
Tipuric made his 93rd Ospreys appearance in Saturday's 31-20 Pro12 win over Ulster and said he always felt sure he would agree a new deal.
"I'm just incredibly happy to have sorted this out so that I can focus solely on my rugby," he told the club's official website.
"I'm a local boy who is privileged to enjoy playing for my home region and now I can do that for another three years.
"It's very flattering to be linked with the clubs that I have been but my focus was always on signing a new contract here. That's what I always wanted and that’s what I’ve done.
"We are working hard here to build something for the long term, we have some quality young talent coming through and you get the feeling that something special is coming.
"I'm pleased that I can continue doing my bit and be a part of it."