Wilkinson helped the French side beat Leicester in the recent Heineken Cup quarter-finals and has turned out a string of impressive displays, but there had been until recently some doubts about whether he would extend his career.
The 33-year-old has even been tipped for a surprise selection by the British and Irish Lions for the upcoming tour of Australia if his form continues.
Wilkinson’s contract had been due to expire at the end of this season, but a new deal has been confirmed on the club’s website.
"The English flyhalf has just signed a one-year contract extension," Toulon said in a statement on their website.
He is the second-highest points-scorer in Test rugby history.
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