Graeme's new contract means he is set to celebrate a decade at Glasgow Warriors.
The Scotland international first signed from Glasgow Hawks in 2003, and the latter year of his new deal will see the 28-year-old become the first player in Glasgow's professional history to reach such a milestone.
On the first eight years of his career, Graeme said: "It seems like only yesterday that I was getting my first game for Glasgow because it's all gone very quickly.
"But I suppose that's the life of a rugby player - time flies when you're enjoying yourself.
"I believe in this team. We have a good young squad that are growing up together and I have a feeling that if the core of this squad can stay together and improve, we can do something special."
Sean Lineen praised Graeme's dedication to the club saying: "It's fantastic news. Loyalty is pretty hard to come by these days in professional rugby so it's great to have someone the quality of Graeme committing to another two years."
The man they call "G-Dog", currently out with a knee injury, holds the Warriors' all-time appearance record having racked up 144 games and is set to stretch his lead when he returns.
He has started 101 of the 113 Magners League matches he has played in, scoring 20 tries in all competitions.
Of Graeme's development as a player and overall contribution to the Warriors, Sean continued: "I've watched him grow year on year both in stature and the way he plays the game.
"He brings a lot to the club off the field as well.
"He's a real trustworthy guy and someone that everyone else looks up to. He gives 100% on the field every time."
Glasgow chief executive, Kenny Baillie, added: "Today's announcement that Graeme Morrison has re-signed for another two years demonstrates our ability to retain crucial members of the Scotland national team.
"It's tremendous that Graeme sees his future in Scotland, with Glasgow, and he will be central to our ongoing development of some very talented young players.