The 22-year-old, who is the latest Stage 3 player to graduate from the Scottish Rugby academy system, will be staying at Scotstoun until at least May 2016.
Kings Lynn-born Ali has made nine appearances for the Warriors and was part of the GUINNESS PRO12 title-winning squad last season.
The Scotland U20 scrum-half was also in the Glasgow squad which won the Melrose 7s earlier this year.
He previously played for Bedford Blues and was part of the Saracens Storm 'A' league set-up.
Ali said: “It’s a huge honour to sign my first professional contract and I’m looking forward to continuing my career in Glasgow with the Warriors.
“I’ve developed a lot as a player over the last 12 months, having had the opportunity to train and play with the first team squad.
“I’m always learning and it’s great to be able to work closely with the likes of Mike (Blair), Henry (Pyrgos) and Grayson (Hart).”
Glasgow Warriors head coach Gregor Townsend said: “We’re delighted to see another player come through our Academy system and Ali deserves this opportunity.
“He works really hard in training and has made real improvements to his game in the past 12 months.
“It’s great for him to have experienced players around him and we look forward to seeing him continue to develop within our environment.”