Wake made the Pro Bowl in 2010, when he had 14 sacks, and he had 8 1/2 sacks last year. He came to the Dolphins in 2009 from the B.C. Lions, where he was a two-time CFL defensive player of the year.
Wake had one year and US$650,000 left on his previous contract. ESPN reported the extension was worth $49 million, with $20 million guaranteed.
"It's kind of like taking things to another level, kind of like when I came down here from the CFL," Wake said Sunday. "It has been an amazing, amazing journey."
Wake has yet to play in the post-season but said he's optimistic about the direction of the Dolphins under new coach Joe Philbin.
"So far, so good," Wake said. "Just trying to make it a first-class organization from top to bottom, and making sure we have everything we need to be successful. We are taking big strides to make sure that 2012 will be a good season for everybody."