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The Switzerland international's deal at the Volkswagen Arena had been due to expire in 2016.
Premier League side Manchester United have previously been linked with a move for Rodriguez, but he was now committed his future to Dieter Hecking's men.
Rodriguez has scored 13 goals in his Wolfsburg career and will be aiming to add to that tally in the second half of the Bundesliga season.
Wolfsburg are second and trail leaders and defending champions Bayern Munich by 11 points, a gap they can cut with victory over the Bavarians in their first game after the mid-season break on January 30.
