Wakely skippered Northants to T20 glory in 2013 and was captain last season, when the Steelbacks went all the way to the final once again, eventually losing to Lancashire Lightning.
The 27-year-old was the top run scorer in their County Championship Division Two campaign and is a staple feature of the side in all formats.
And Wakely is delighted to have agreed an extension to his deal, which had been due to end at the conclusion of the 2016 season.
“I am very happy to be staying at the club I have been at my whole career,” he said.
“I genuinely love this club and I want to see it succeed.
“I still feel I have so much more to achieve in my career and I want to score the runs I know I should and can.
“I believe we have a young, talented and well balanced squad who i am happy to captain any day of the week!
“At a club like Northants, where nobody gives us a chance, there is nothing better than beating the bigger teams.
“I want more of this and I want to bring some more silverware back to the club.”
And head coach David Ripley is also happy with the news.
Ripley said: “Alex has shown great leadership qualities in his time as captain, a t20 win and runners up already on his CV.
“He is a very popular player, not only in the dressing room but around the whole club, a real credit to himself and the club.
“We have known each other a long time and I enjoy working with him, I look forward to more of the same going forward.”