Chester, 38, was appointed Trinity coach last March and guided them to the semi-final of the Challenge Cup and Super League safety.
The former Hull KR coach's new deal will see him remain at the club until the end of 2019.
"The negotiations were very easy and over quite quickly, we both have the same thoughts of how we want the club to progress," he said.
Trinity are eighth in Super League, with three wins from their opening six games.
Wakefield coach Chris Chester has signed a new two-year deal.