Wilson, whose debut season goals in 2014/15 fired Bournemouth into the Premier League, will be 30 years of age by the time his new deal expires.
"I'm delighted to sign. It's nice to see that the hard work I've put in be rewarded and I'm excited about the future," he told AFCB.co.uk.
"During my time at the club I feel like I've developed as a player, both physically and mentally. I've progressed and learnt a lot about the game and the position I play."
The former Coventry player then netted further goals against Leicester and Sunderland in the weeks that followed, before a cruciate knee ligament injury ruled him out of action for almost seven months.
Wilson cruelly another serious knee injury in January 2017, but he returned to action last October and scored eight Premier League goals in 28 appearances, including a hat-trick against Huddersfield, that helped the Cherries to record another comfortable top flight season.