Gloucester keep their pivot
Burns, who made his first team bow in February 2012, is proof of the home grown talent being nurtured through the Gloucester Academy.
Since his debut five seasons ago, the young playmaker has made over 50 appearances in the Cherry and White jersey, starting the first five Premiership games of the current season.
The 2013 Junior World Champion has undoubted skill and potential and this has led to Director of Rugby David Humphreys moving swiftly to ensure that Burns stays at Kingsholm.
"Billy has all of the attributes that we are looking for in a flyhalf and he is growing with every opportunity that he is given. He has been developing his own game and reputation as a player in a high-pressured position and we are very pleased with his progress.
"We've made no secret of the fact that we're trying to build a core group of talented English-qualified players and Billy fits the bill," Humphreys said.
Meanwhile, Burns admitted that it had been an easy decision to extend his stay at Kingsholm.
"I've been really happy with the way things have been going for me personally and I'm confident that the club is moving in the right direction.
"I've been getting more game time this season and have been trying to put into practice the things that I've been learning from watching the likes of James Hook and working with backs coach Tim Taylor.
"I feel really at home here and am enjoying my rugby. I had no hesitation in signing and am now looking forward to the rest of the season," Burns said.