The 50-year-old was appointed by Wasps in 2011 after starting his coaching career with Cardiff Blues and he has overseen massive changes at the Ricoh Arena outfit.
Young guided Wasps to second place in the Premiership last season and they currently sit third in the table after 12 games of the 2017-18 campaign.
The Welshman has revealed his delight at penning fresh terms and believes he can continue to steer them on a positive path.
Young told the club's official website: "I have really enjoyed my time at Wasps and am excited to be staying at the club.
"The next step for us is to be consistently involved at the top end of the Premiership table and in the European Champions Cup knockout stages."