The deal will keep the Scotland international winger at Scotstoun until at least May 2019.
The 24-year-old has played 24 times for the Warriors with three tries to his name.
The Glasgow-born winger has two caps for Scotland, with his most recent coming in the win over Georgia at Rugby Park in November and he has also represented Scotland 7s
Speaking to glasgowwarriors.org, Rory said: "I'm delighted to be staying at Scotstoun for another couple of years.
"It was an easy decision to stay in my home city and continue to play for my home club.
"I've been enjoying my rugby this season, especially playing at Scotstoun with the boys in front of the crowd and although my injury has set me back Iím eager to get back out on the pitch soon.
"I'm looking forward to Dave Rennie coming in next season. He's done a lot in Super Rugby and with the New Zealand U20s and has a lot of knowledge, so it'll be good to learn from him."
Glasgow Warriors head coach Gregor Townsend added: "Rory is an important member of our squad and it's great that he's decided to continue his career at Scotstoun.
"Rory is proud to represent his city and has improved every season he's been at the club.
"He's played really well this season and there is a lot more to come from him in the future."