The 25-year-old has scored 13 tries in 65 appearances for Trinity since joining in 2015 from Hull FC.
"It is good to get my future sorted for the next two years," Arundel told Wakefield's official website.
Head coach Chris Chester added: "It gives us some really good competition in the outside backs and the contract is a reward for his consistency."
Wakefield Trinity centre Joe Arundel has signed a new two-year contract with the Super League side.