Townsend said: "Sean is a great role model of how to look after yourself physically and play at a consistently high level throughout a season.
"He's always said he'd like to keep on playing which is great, as the desire to keep improving and enthusiasm to play the game are vital components of performing well.
"He's shown that his motivation levels are just as high as ever and his rugby ability is clear for all to see.
"His influence around the group is a strong one as other players look up to him for what he's achieved in the game and what he's still delivering on the pitch.
"We're delighted to be able to have him with us for another season."
There is plenty of reason for cheer at Glasgow with Simone Favaro having been named the club's Player of the Season.
The Italy flanker joined the Warriors from Benetton Treviso last summer and has made 13 Guinness Pro12 appearances this term, scoring three tries.
The 27-year-old beat off competition from six of his team-mates to come out on top in an online vote by supporters.
Outgoing second-row Leone Nakarawa was named Players' Player of the Season and 20-year-old prop Zander Ferguson their Young Player of the Season.
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