He becomes the eighth player to commit his future to the Warriors this season, following new deals for Stuart Hogg, Peter Horne, Lee Jones, Leone Nakarawa, Henry Pyrgos, Tommy Seymour and Josh Strauss.
Number 8 Ashe signed his first professional contract with the Warriors last August, after coming through the Scottish Rugby Elite Development Programme and this new deal means he'll be staying at Scotstoun until at least May 2017.
The 21-year-old has three caps for his country, after making his debut against South Africa in June. He also featured against Argentina and New Zealand in the viagogo Autumn Tests last November.
Ashe has played eight times for the Warriors, including the full 80 minutes of the win over Bath Rugby in the European Rugby Champions Cup last October.
Adam Ashe said: "I've been at the Warriors since I was 19 and it has really helped me progress as a player.
"I'm now getting the opportunity to play regularly for Glasgow and I've played a few games for Scotland, so it's been a great 12 months for me and hopefully there's more to come.
"This is a great club with a really bright future, so I'm happy to be staying in Glasgow for another two years."
Glasgow Warriors head coach Gregor Townsend added: "Getting Adam signed up for another two years is great news for the club as we continue to shape our squad for next season.
"He is a hard-working back-rower with an excellent set of skills and has played well for club and country this season.
"Although he's predominately a Number 8, he can play across the back-row and he would have undoubtedly played a lot more this season if it hadn't been for injury.
"He's now getting close to returning to action, which will be a big boost for us at a very important period of the season."
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