Team owner Ted Leonsis didn't reveal the terms of deal, but the Washington Post reported it would keep Wall with the Wizards until 2019.
"Since drafting John with the first overall pick (in 2010), we have been impressed with his maturation, hard work and commitment to our franchise," Leonsis said.
"He is the cornerstone of our team, and we have clearly expressed our desire to build around him well before making it official by re-signing him today. We are extremely confident in his leadership abilities and are excited to see the continued improvement of the team."
Wall is coming off a season in which he posted career highs 18.5 points and 44.1 percent shooting, meanwhile dishing off an average of 7.6 assists over 49 games.
The University of Kentucky product sports career averages of 16.9 points, 8.0 assists, 4.4 rebounds and 1.5 steals in 184 games.
"I am both proud and humbled by the belief that the Wizards organization, the fans and my teammates have shown in me since I arrived here three years ago," Wall said.