The 29-year old former Celtic right-back, who kicked off his career at Tannadice in 2000, has penned an 18-month deal which will keep him with the Tayside club until the summer of 2015.
Wilson, who returned to United from Bristol City on a six-month deal this past summer, has impressed during his second spell with the Terrors which prompted manager Jackie McNamara to offer him the new contract.
"I said back in August that the short-term deal would give both Mark and the club a chance to see if things could work out to the satisfaction of both and this has proved to be the case," McNamara told the club's official website.
"He adds great experience both on the park and in the dressing room and also enhances our options in selection.
"To have someone of Mark's experience here until the end of next season will help nurture the youngsters who play alongside him and I am delighted he has signed this extension."
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