The former Castleford Tigers, Hull and Bradford Bulls player has agreed a deal which will keep him at the club until the end of 2019.
Arundel, 25, has scored 13 tries in 65 appearances since joining Wakefield in 2015.
He said: “I am very pleased, it is good to get my future sorted for the next two years and I look forward to progress [ing] and build [ing] on what has been a successful time so far.
"The deal has happened pretty fast and I am really looking forward to the next two years at Wakefield.”
Trinity coach Chris Chester said: “I am delighted that Joe has committed his future for another two years.
"He has been playing some of his best football at the club. It gives us some really good competition in the outside-backs and the contract is a reward for his consistency.”