The Birmingham-born stopper agreed the new deal, which will keep him at the club until 2017, following a string of impressive performances during the club's promotion back to the Sky Bet Championship last season.
After keeping a club-record 25 league clean-sheets last term, Ikeme expressed the importance of securing his long-term future at Molineux.
"I'm delighted to have agreed a new deal," the 28-year-old told the club's official website.
"It gives me the opportunity to concentrate purely on my football now with another really important season coming up.
"I've been at Wolves for a long time and certainly didn't want to leave and I'm very excited about what is going to happen in the future.
"Now I'm just looking to continue to work hard and continue to improve."
Wolves boss Kenny Jackett mirrored Ikeme's thoughts on the new deal.
"I'm delighted that Carl has committed his future to Wolves," the former Millwall boss said.
"It is a very exciting time for the club and Carl was a key player for us last season and I think will continue to be so.
"He is a very dedicated professional and, as a goalkeeper, is coming into his prime with his best years ahead.
"I'm very pleased that a deal has been done and he has committed his future to the club."