The deal will keep Stamps in Edmonton through the 2013 season.
Stamps was the team's leading pass catcher last year with 82 receptions for 1153 yards and eight touchdowns in 15 games.
It was the third consecutive season that the New Orleans native has cracked the 1,000-plus yards receiving mark.
In five seasons with the Esks, Stamps has 325 receptions, 4,818 yards and 27 touchdowns in 75 regular-season games.
Stamps, who was entering his option year under his previous contract, was CFL all-star in 2011 and 2009.
Terms of the contract were not released by the club.