"We're delighted that Alun has been able to sign a new contract with the Warriors," said Ruddock. "He is a great asset to our organisation and has made a significant impact during his first season.
"Alun had a very tough act to follow in Tony Boddy; however, he has managed to demonstrate the same standard of meticulous organisational qualities.
"He is hugely respected by the playing and coaching group and his experiences as a top class international player and as a former WRU analyst has given him added expertise and skills that really make a difference in this environment.
"There is no doubt in my mind that Alun is fast becoming one of the top team managers and administrators in professional club rugby."
Carter previously worked as head of match analysis for the Wales team between 1998 and 2007. His tenure with the coaching set up took in one Five Nations tournament, which included Wales's victory over England at Wembley in 1999, seven Six Nations tournaments, including the Wales Grand Slam of 2005, and two Rugby World Cups working under Kevin Bowring, Graham Henry, Steve Hansen, Gareth Jenkins and current Warriors boss Ruddock. In 2001 he toured Australia with the Lions as Technical Assistant.
As a player, Carter captained the first ever Grand Slam winning Wales Schools side in 1983 and later went on to play for home town club Pontypool as a flanker, where he made 150 appearances, and then Newport. Carter was capped twice at senior level against England and Scotland in the 1991 Five Nations.
"It's obviously a challenge in your first season, but I quickly realised how much of a privilege it is working in a club like this, with the coaching staff through to the players, general staff and supporters," said Carter.
"The first year is a learning curve and about understanding what works. That is why I enjoyed the second period of last term in particular. We were able to do things that impacted on the players.
"As a squad we took part in activities such as a helicopter trip and the Land Rover experience. It made an impact, away from the training field, as the players were enjoying themselves. When you have got a group that want to be together a great team spirit develops and that is very productive.
"There is a huge commitment to success here and it will happen, it is just a case of when. We've got the best base in the Guinness Premiership for a number of reasons at Sixways. We have the best Director of Rugby, the best captain on and off the field, the best backroom team possible.
"Everyone at the club is hugely motivated and energised, quality people. It's just a matter of time before we taste success."