Commenting on www.gloucesterrugbyclub.com Eustace said: "I was born in Gloucester and have grown up in the city, coming through the youth sides and playing for the Club means everything to me.
"As the game has developed we've seen many different players at the Club from across the world, so it's good to keep a number of Gloucester boys here, what with Hazey (Andy Hazell) re-signing a few weeks back as well.
"Even though there were other offers out there, I didn't want to move. I believe there are some great things on the horizon for this club over the next few years.
"You only have to look at who else has recently signed up. We're made some good signings, what with the likes of Mike Tindall arriving, and are keeping some key players.
"I was looking back at the Newcastle game and the pack on show in that game has massive potential, in terms of the average age, with the likes of Balding (25), Brown (25), Wood (22) and Powell (25).
"It's a young set of forwards, but if we can keep everyone together, then there is going to be something pretty good over the next few seasons."
Eustace joins Alex Brown, Peter Buxton, Andy Hazell, Terry Sigley and Phil Vickery in signing a new deal at Gloucester in recent weeks, as well as the signings of young centre Anthony Allen and England star Mike Tindall.
|Adam Eustace Profile:|
|Date of birth:||09.01.79|
|Height:||1.96 (6ft 5")|
|Weight:||110kg (17st 5lb)|
|International hons:||England 'A', U21, U19|