The 21-year-old, who began his career at Bath before moving to Kingsholm, made his debut in 2009 and has gone on to establish himself as the club's first-choice No.10.
And Burns, whose form has seen him called up to the England Saxons, is aiming to continue his rapid rise at Gloucester.
"I'm very pleased to get it done and can now look forward to the rest of this season and the next two after that," he told the club's official site.
"I think I'm becoming more consistent in my own game and I'm starting to build key relationships with the other players.
"I'm happy with how I've been playing for the past few weeks and hopefully I can push on now and keep developing as a player in a Gloucester shirt and help the club to achieve bigger things.
"There's always talk about other offers being out there and it's flattering to hear that other clubs have got their eye on you but my heart's with Gloucester and I always wanted to stay.
"I came here from the Bath academy and Brush (Bryan Redpath) was the man who gave me my shot. I'm settled here, it's a massive vote of confidence that Brushy and the board have placed in me and I intend to repay that faith."
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The entire All Blacks apparel line has been updated for 2013/14. Check out the New Zealand All Blacks polo.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Gilbert Blitz 8S rugby cleat is a great cleat at a great price of $69.99. Get a new pair of cleats today.
A cool looking all black rugby cleat with the high performance adidas is known for. Get in the Gear!
Wear the crest of the British and Irish Lions on your t-shirt. A great look for the summer.
The All Blacks Performance t-shirt is black with hints of blue from the training jersey. Very Cool.
The New Zealand All Blacks training jersey for 2013/14. Get in the Gear!
The USA Rugby Pro Alternate rugby jersey is perfect for any fan of the Eagles. Get yours to wear during the summer Test matches.
The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.