Salvi, who was included in Australia's World Cup training camp at the beginning of 2007, has been a revelation for the Brumbies so far this season, managing two tries in seven matches.
Coach Laurie Fisher was delighted the robust back rower, who grew up nearby, has decided to remain loyal to the club.
"It's particularly pleasing to see a player rise through the local ranks the way Jules has and we're very pleased to see him remain with the Brumbies," said Fisher.
"He's a very mobile and fit back rower who is very hard at the ball and he's made a noticeable impact with each performance this season.
"He's been very professional in his approach throughout his career, he's keen to learn and develop his game and that attitude will hold him in good stead."
Salvi, who attracted numerous offers from rival Australian clubs, was pleased to remain in Canberra and is hoping to push his way into the Brumbies starting line-up by the end of this season.
"Being a born and bred Canberra boy my preference was always to stay with the Brumbies," said the 22-year-old.
"I've enjoyed being part of the program since I joined the academy in 2000. We've got a great young squad at the moment, my family is all in Canberra and I love playing here.
"While there was some interest from elsewhere, I believe that staying with the Brumbies is my best opportunity to develop my game at Super 14 level and prepare myself for any higher honours in the future."