The 20-year-old burst onto the scene in April, scoring a try on his debut in a 26-24 victory over Leeds Rhinos.
The former Keighley Albion junior has gone on to make a total of five appearances for Chris Chester's side in 2019 and insisted it wasn't a difficult decision to remain at Wakefield.
“I’m over the moon to have signed a new deal,” he said.
“Hopefully next year I can carry on getting some more games under my belt.
"It was an easy decision for me to sign the contract and I think Wakefield can develop me further, so I’m excited for the future."
Chester has been impressed by the youngster's performances this term, and added: “It’s great news that Lee has signed a new deal at the club.
"He’s been enjoying a good run in the side and has impressed on each occasion.
"He’s a player that is always eager to improve and I’m looking forward to seeing him develop in the future.”
Kershaw was one of three of Wakefield's younger players offered a new deal last month.
Jordan Crowther had been offered a two-year deal while Titus Gwaze was offered a one-year contract.