Lamb has been central to Gloucester's charge to the top of the Guinness Premiership and unbeaten record in this season's Heineken Cup with a series of excellent performances.
The 21-year-old, who graduated into Gloucester's senior ranks from St Peter's School in the city, has pledged his future to Gloucester until 2010, joining team-mates Peter Buxton, Alex Brown, Marco Bortolami, Andy Hazell and James Simpson-Daniel in agreeing new terms.
"There has been a lot said and a lot written about me but I have just concentrated on my rugby," Lamb told www.gloucesterrugby.co.uk.
"It was up to me to go out and earn a contract, to show the coaches I had the ability to mature, learn and make myself a better player.
"These things are not just handed out and in that respect I am really pleased to have made the progress I have this season. There were aspects of my game that I needed to improve and I think I have started to do that and repay the faith of the coaches.
"Being a local kid, nothing gives me greater satisfaction than pulling on a Gloucester shirt and running out at Kingsholm. It is a fantastic experience and I hope I can continue doing it for many years to come."