Born in Kings Lynn, Price has made 16 appearances for the Warriors so far, including six this season in the GUINNESS PRO12.
And having also played a played a part in the title-winning squad last year, Price is looking forward to kicking on.
"I'm delighted to sign a new two-year contract to extend my stay with the Warriors," said the former Scotland Under-20 international.
"I've loved life in Glasgow since moving up here and the last few months have been great, as I've played regularly and I feel I've made a positive impact.
"Being able to train and play with quality players at Scotstoun has also allowed me to improve aspects of my game."
Price's news follows hot on the heels of Alex Allan and Sila Puafisi signing new contracts at the Scottish club, with head coach Gregor Townsend delighted to secure the long-term services of another player.
Glasgow Warriors head coach Gregor Townsend said: "Ali is continually developing as a scrum-half and it's great news that he's staying with us for the next couple of years.
"He's worked hard on his game over the past 12 months, and you can see the confidence he now has in his kicking game and taking on the defence with ball in hand.
"The most important attributes of a scrum-half are a fast and accurate pass, as well as a high fitness level and Ali has done well in these areas this season, seizing the opportunity to play for us in some important games."
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