The announcement is seen as a major positive for the club as another one of Warriors' top performers has signalled their intention to join Dean Ryan on his journey to bring long-term success to Sixways.
Grove, who has three caps for Scotland, made his Warriors debut against Newport Gwent Dragons in 2006 after progressing through the club's academy.
He has gone on to be a consistent performer in the Warriors backline and made his one hundredth appearance for the club against Sale Sharks last December.
Grove said: "The club has clearly shown its intent by the people recruited behind the scenes. The foundations are now in place and I want to be part of things when we ultimately move up the table.
"The club has really shaken things up and that's what we've needed. In the next three or four years I believe that it is achievable to become one of the top sides in the Premiership."
Director of Rugby Ryan added: "I am delighted that Alex has chosen to commit to the club at a time when we are building for the future.
"We are looking to bring long-term success to this club and to achieve that we must ensure our best players want to be part of our journey.
"Alex embodies the type of player that will help us achieve our vision and this announcement is a great endorsement to the work everybody is putting in."
Chief Executive Charles Cameron commented: "Alex has become a key player for the club over the last five years and clearly believes we will achieve success going forward.
"Having come through the academy, he has a great attachment to this club and, as more young players follow his pathway to the first-team, his presence will continue to be vital in helping this club move in the right direction."