The 29-year-old New Zealander is the second player this week to have agreed a new deal to stay at Franklin's Gardens.
Wilson arrived in Northampton last summer after a year-long spell at Bourgoin, with the majority of his career having been spent playing for Southland in the ITM Cup and Ranfurly Shield.
After his time in France was abruptly curtailed Wilson says he has settled in at Franklin's Gardens and had no hesitation in signing a second contract to stay in the East Midlands.
"I'm very happy and over the moon, to put it lightly," he said. "I'm very grateful for the opportunity that Jim and the rest of the coaches have given me and to sign a new deal to stay at Franklin's Gardens is fantastic.
"The team environment has been great to be a part of. Everyone gets along with each other and we try to play a good brand of rugby. We're trying to be as good a team as we can and I can see us getting a lot better over the next few years."
In his short time in the black, green and gold Wilson has worn both the 15 and 14 shirts, and played in the centres during pre-season. Some players shy away from the 'utility' tag, but the Invercargill-born Wilson embraces it.
"Throughout my career it's been a positive," he added. "It's got me into teams where I may not have otherwise have played. Here it's been a positive - I've played at full back and on the wing, and am an option for the coaches in the centre as well. I'm happy to play that role as a utility player."
Director of rugby Jim Mallinder is happy that Wilson has put pen to paper once again.
"We have been impressed by James in his short time at the club," he commented. "He has played well in a number of positions and gives us plenty of flexibility within the squad. He has a strong skill set and understands the game well. I'm very happy that he has signed again with us and am sure that he will continue to contribute in the coming seasons."