Young ends speculation about his career
The former Wales international prop, who joined the club in 2011, had been touted among the contenders to succeed Warren Gatland as national head coach following next year's World Cup in Japan.
But Wasps confirmed that Young, who guided the club to last season's Premiership final, has pledged his future to the domestic game.
"As a proud Welshman, I am obviously humbled by being talked about as a possible future national coach," Young said in a statement released by Wasps.
"However, here at Wasps, we have made really good progress over the past few years and there is still so much to come. I am excited by the potential this squad has and I want to be here to help them fulfil it."
Wales hope to appoint Gatland's successor later this year, with his fellow New Zealanders Dave Rennie and Wayne Pivac understood to be among the favourites.
Under Young, Wasps have been European Champions Cup quarter-finalists in each of the past three seasons, and they are now firmly established in the English Midlands after moving from London to Coventry's Ricoh Arena.
Wasps chief executive Nick Eastwood said he was delighted that Young, 50, had put pen to paper.
"This is a massively important announcement regarding the long-term future of the club," he said. "Dai is one of world rugby's most respected figures, and I am delighted that he will be staying with us."
The length of the new deal has not been disclosed. He was previously reportedly under contract until 2019.
Agence France-Presse
