The 30-year-old returned for a second stint with Warriors last summer after three years in England with Wasps and Harlequins.
He spent the early parts of the season deputising for injured Scotland star Stuart Hogg at full-back as Dave Rennie’s men kicked off their Guinness PRO14 campaign with 10 straight wins.
The playmaker - who has also filled in at 10 this term - has gone on to make 22 appearances in all with his performances even winning him an international recall to Gregor Townsend’s Dark Blues squad for the Autumn Tests, winning his 31st cap off the bench against Australia.
Jackson said: “I’m absolutely delighted to be staying in Glasgow next season. I’ve really enjoyed it this season, so to be able to stay on for another year is awesome and I can’t wait to see where we can go.
“It’s been a bit different playing mostly at full-back, but I’ve absolutely loved it. It’s been great to get regular game-time and the way we play we like to spread the ball about so you still get plenty of touches and I don’t feel too left out back there.
“It’s just been fun playing again. With Dave Rennie coming in it has been refreshing and training has been pretty tough - we get pushed to our limits, but that’s what we need to take ourselves onto the next level. Hopefully we can finish the season on a high because it has been a great year so far.”
Rennie said: “Jacko has been outstanding for us this year. After coming in just two weeks before the comp started he’s been one of our top performers all season and we’re rapt that he’s staying.
“He’s a good man, really popular amongst the squad and his skill set and versatility make him a great asset for us.”
Meanwhile, Warriors hooker Pat MacArthur will retire from rugby at the end of the current season with a view to pursuing a new career.