The 28-year-old Scotland international made his 100th appearance for the Scotstoun club last weekend and has now re-signed for the 2022-23 campaign.
Price, who played for the British and Irish Lions in the summer, believes he still has further scope to take his game to new heights.
After agreeing his new deal, he told Glasgow's website: "I'm over the moon to re-sign.
"My whole career has been with this club, since coming here as a 20-year-old. Everything I've managed to achieve in my career to date I owe to the coaches and team-mates I've had in the Glasgow environment, and I'm excited to keep going.
"It's been an incredibly exciting time for me, and this week has been a bit crazy with the way it's all panned out - captaining the team on my 100th appearance and then this, there haven't been many weeks like it.
"I feel like I've matured as a person as well as a rugby player while here.
"I just want to keep getting better. I've still got a fair few years left in me, and I want to be one of the best in the world in my position. I'm excited to keep improving and show what I can offer to this club."
Head coach Danny Wilson is delighted to secure Price's services for another season.
He said: "It's great news that Ali has committed his future to Glasgow Warriors.
"He's a world-class scrum-half who's hugely passionate about playing for this club.
"Over the last two or three years, Ali's development has been clear to see at both club level and on the international stage, which culminated in him becoming a Test Lion in the summer.
"We're all looking forward to continuing to work with him in the coming seasons."