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The main objective of this paper is to investigate an extension of the "Volterra-Gross" Laplacian on nuclear algebra of generalized functions. In so doing, without using the renormalization procedure, this extension provides a continuous nuclear realization of the square white noise Lie algebra obtained by Accardi–Franz–Skeide in Ref. 2. An extended-Gross diffusion process driven by a class of Itô stochastic equations is studied, and solution of the related Poisson equations is derived in terms of a suitable λ-potential.