The number eight has sealed a new two-year contract extension that will keep him at Gloucester until June 2008.
He joins youngsters Olly Morgan, Mark Foster and Nick Wood in finalising long-term deals at Kingsholm this season.
"To be honest with you, I am just thrilled," Balding, told www.gloucesterrugby.co.uk. "It seems so long ago since my Leicester days and I like to think I have moved on to bigger and better things.
"I am so pleased with how everything is going and just glad I have the chance to play my part in Gloucester's future for another two years.
"My ambition is to push myself even harder and to play a big part in the team during 2006. My job now is to contribute to the success of this team."
Head coach Dean Ryan added: "Adam is one of our senior players and it is great to secure him to the club long-term.
"He is a player who leads by example, is supremely competitive and is somebody we want to work with for a long time. I am really pleased it has been concluded so quickly.
"To have someone of Adam's ability at the club is a major boost for us."
Balding, who signed from Leicester two years ago, fractured a cheekbone in three places on the opening day of the season against Worcester Warriors.
But the 26-year-old has recovered to resume his position on the back of the Gloucester scrum. His form, attitude and sheer commitment were the standout features during Gloucester's late charge last season that ended in play-off disappointment against Saracens at Twickenham.
However, he was rewarded for his efforts by being made club captain at the start of this season and has made 34 appearances with four tries in his Gloucester career.
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