The Ghanaian international, whose contract was expiring this summer, has made 27 appearances for the club, scoring two times.
"Guimaraes is like a home for me, has been great playing here and I am so happy to continue. I will always give my best for the club,'' Wakaso said after putting pen to paper.
Wakaso has been in good form for the club and became set a new record in Premera Liga in February when he became the player with the most successful tackles in a season in the Primeira Liga.
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