The 31-year-old was due to see his original contract expire in June 2024, but he has now decided to put pen to paper on a 12-month extension.
Gross has been a key cog in the Brighton machine since joining the club from FC Ingolstadt 04 nearly six years ago, scoring 23 goals and registering 33 assists in 184 appearances in all tournaments.
The German playmaker has also created a total of 388 chances in the Premier League for the Seagulls; only Manchester City's Kevin De Bruyne (535) has created more since the summer of 2017.
Gross has established himself as an influential member of Roberto De Zerbi's first-team squad this term, missing just one game across all competitions since the Italian's arrival in September.
Brighton's No.13 has shown his versatility throughout this campaign, operating in a variety of midfield positions and as a makeshift right-back while contributing with six goals and eight assists in 35 matches.
Gross has now opted to commit his future to the Amex Stadium, and De Zerbi has expressed his happiness to be keeping hold of a key player in his squad.
"I am absolutely delighted that Pascal has agreed a new contract with us," De Zerbi told the club's official website.
"He is one of best players I have worked with during my career and every day I appreciate him more and more. He is one of the secrets to Albion's success."
Gross has become the fourth Seagulls star to sign a new contract with the club over the last two months after Solly March, Adam Lallana and Moises Caicedo.
Lallana's deal now runs until the end of next season, while March and Caicedo are under contract at the Amex until 2026 and 2027 respectively.
Brighton currently have two players in the form of Joel Veltman and Jan Paul van Hecke who are out of contract this summer and it remains to be seen whether he Seagulls will look to negotiate fresh terms for the defensive duo.
De Zerbi and co are next in action at Wembley Stadium where they will lock horns with Manchester United in the FA Cup semi-finals on Sunday.