The popular forward has originally re-joined the 15-time SWPL champions on a six-month loan deal in January and the 26-year-old will now begin her third spell at the club.
Commenting on her move, Grant said: “Glasgow City is like home to me. I’m delighted to have signed a permanent deal for the upcoming season and I’m excited for what’s to come and can’t wait to get started again with the team.”
Head Coach Eileen Gleeson added: “I am delighted that Abbi is to extend her time with Glasgow City. I look forward to working with her further during the upcoming season.
“Abbi shares a great history with Glasgow City and truly understands what it means to be a Glasgow City player.
“She is a skilful creative player and sure to be an exciting watch for Glasgow City fans and Scottish women’s football fans alike.”
Grant won four Scottish Women’s Premier League titles, two Scottish Cups and an SWPL Cup across her two previous stints at the club.
Meanwhile, City have confirmed the departure of SEVEN first-team players ahead of the 2022/23 SWPL1 season.
Vital Kats, Niamh Farrelly, Julia Molin, Ode Fulutudilu, Tyler Dodds, Agata Filipa and Mya Bates have been released.
A club statement read: “Everyone at Glasgow City FC would like to place on record their thanks to each and every departing player for their immense contributions to the club, and indeed our history.
“We would also like to wish each departing player the very best of luck in the future as they take the next steps in their careers.”