Ali moved to Worcestershire CCC for the 2007 season, and has gone on to become one of the first names on the teamsheet. During his career, he has scored eight First Class centuries.
Ali said, "When I first joined the Club many people told me what a fantastic place New Road is to play and they are right, so I am delighted to commit my long term future to the Club."
"The future for Worcestershire looks good and being a part of it excites me. I look forward to helping the Club progress back to Division One and win some trophies."
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West Bromwich Albion Chairman Jeremy Peace says the striker will not be sold this summer despite him handing in a transfer request.