The 20-year-old has made seven senior appearances for Rovers so far in his career.
Born in Wales, he has previously had loan spells at non-league sides Taunton Town and Bath City.
One of five players offered a new deal by boss Darrell Clarke at the end of the season, Broom is the second to sign on so far, after defender James Clarke.
Bristol Rovers midfielder Ryan Broom has signed an extended contract with the League One club.