The in-form flanker, who was the club's academy player of the season last season, has committed to the Falcons for the next three years.
And the 22-year-old believes that the club has a bright future despite their current position at the foot of the Aviva Premiership.
"Our owner Semore Kurdi wants me to stay here and be a part of the club's future, and I was always keen to stay on board," said Wilson.
"I am happy in Newcastle, I am really enjoying my rugby with the Falcons and I am getting a lot first-team exposure.
"At my age that is vitally important, and the ambition of the club is there for everyone to see with guys like Jimmy Gopperth signing up for another three seasons."