And, according to the full-back, he wants to be a big part of the Warriors side as they look to become a dominant force in the Aviva Premiership over the next few years.
He said: "I'm very happy that I've extended my contract and I'm really excited about the direction the club is going.
"I'm focused on the bigger picture and, with the set-up we have, I don't see how we won't be successful in the future.
"Results haven't been what we would have liked this season but I'm very confident we're going to turn that around.
"I'm confident that success is just around the corner for us and I want to be a part of that."
Pennell has enjoyed an outstanding start to the season and has been lavished with praise from those within the rugby circles.
And at only 26-years-old, the academy graduate feels he can still improve under the coaches at Sixways.
He added: "The fact that I'm still improving as a player is credit to the coaching set-up and how much it suits me and I'm excited about the prospect of developing further.
"I was born in Worcester and I've been at the club a long time. I feel there is an awful lot I can still do for this club and an awful lot the club can offer me.
"The really exciting stuff is going to happen over the next three or four years. Fingers crossed I'm going to be a big part of that and I'm really looking forward to the future here."