The franchise also tweeted photos of Wake inking his new deal:
According to ESPN's Adam Schefter, the two-year contract is worth $19 million with $11 million guaranteed.
The 35-year-old was named to his fifth Pro Bowl last season, when he registered 29 tackles, 11.5 sacks and five forced fumbles.
That came on the heels of a 2015 campaign in which he missed nine games with a torn left Achilles tendon.
The former Penn State standout has played for the Dolphins since 2009 after a two-year stint in the CFL, where he earned back-to-back Most Outstanding Defensive Player honors.
Wake has reached double digits in sacks on four occasions in the NFL and has 81.5 career sacks to his credit, which ranks tied for 11th with James Harrison among active players.
Miami's decision to re-sign Wake came two days after it released defensive end Mario Williams following his disappointing season.
Even with Wake's 11.5 sacks, the Dolphins tied for 19th in the NFL last season with just 33 overall.
Wake had been set to earn $7 million in the last year of his contract, per Schefter.