Spence after two years as a contracted player at Selhurst Park, has put pen-to-paper on a deal with the National League North outfit.
The 21-year-old had been in search of his third permanent home and underwent a trial at League Two side Walsall before dropping two divisions to join Gloucester.
Spence featured in a number of trial games and impressed enough for Bristol Rovers legend Lee Mansell to give him a contract for the campaign.
The Wales Under-21 international becomes another player with links to the Pirates, who has gone on to play for Gloucester.
He had spent the entirety of the 2021/22 season on loan at the Gas and played a small role in their promotion-winning campaign.
Brought in on a season-long loan, he made 12 appearances in total under Joey Barton last season, though he didn’t play a competitive match from January onwards and was often brought to matches but didn’t feature in the match day squad.
Speaking to the official club’s YouTube channel, he reflected on his time at the Memorial Stadium with a positive outlook.
‘I was at Bristol Rovers last season, we had a good year and got promoted,” he said.
“I probably didn’t play as much as I like. It was a good experience and I come up with some good goals and important moments, so hopefully I can do that here as well.
“Being a loan player is difficult, you are going in. All the boys usually know each other, so you’re going in as a fresh face, so it’s difficult. Being able to settle down and now focus on this project is exciting.”
As well as the arrival of Spence, Gloucester have also signed Kieran Phillips and Lucas Tomlinson who were released by Rovers this summer. Daniel Leadbitter, who made more than 100 appearances for the club is also amongst their contracted players.
Gloucester’s competitive season starts tomorrow with a long away trip to Darlington.