It's yet more positive news from Kingsholm following the re-signings of the likes of Jim Hamilton, Will James, Charlie Sharples and Henry Trinder in recent times.
Morgan, who turned 26 last week, has spent his entire professional career with Gloucester. A former pupil at Millfield School, he signed his first professional contract with the club in 2004.
His unrivalled ability under the high ball and attacking threat have since seen him establish himself as the first choice full back with Gloucester and he won international recognition in 2007 when he earned two England caps.
He has now represented Gloucester well over 100 times and has been in fine form this season, scoring tries in his two most recent outings against Saracens and the Exeter Chiefs.
Morgan putting pen to paper is an obvious boost to the club as they prepare for Saturday's Heineken Cup opener at Toulouse on Sunday and the player himself is understandably delighted:
"I'm over the moon really. I've been here for eight seasons now and I'm probably classed as a bit of an old man!
"It's a great club to be at and I'd be happy to spend the rest of my playing days here. When the contract was offered, I didn't hesitate at all.
"It was a short process and I'm thankful things have been done. Getting it out of the way means I can focus on the rugby.
"I enjoy the way we play our rugby and, with the players we've re-signed and the players that are going to be signed, I think the future is bright."