Wrack, 29, has made over 300 senior appearances since joining the Saddlers from Grimsby in 1998, having begun his career as a trainee at Derby.
"I have done a lot of thinking this summer," said Wrack, who earlier this summer had been linked with Bradford.
"I'm delighted to be staying. I will play wherever the gaffer wants me to and hopefully have an impact," Wrack told the Walsall website.
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