The 23-year-old has put pen to paper on a deal that will see him stay at Trinity for a second consecutive season.
He joined the club last December, after leaving Leigh Centurions following their relegation from Super League.
The former Wigan Warriors man made 25 appearances for Wakefield this campaign, scoring five tries and kicking 58 goals.
"It has took a while and it is about time it has been done," said Hampshire.
"But it is another year at a good club and I am looking forward to it.
"The fans have been onto me most of the year to stay and right now it is the right move for me."
Hampshire, who grew up as a Trinity fan, believes that staying at his boyhood club can bring the best out in him.
He has plenty of Super League experience, previously turning out for Wigan, Leigh and Castleford Tigers in the top flight.
He added: "I had to be patient this year and get my spot, but I think after that I played my best rugby.
"I needed time to get in there and I knew what I could do from that."
Trinity secured a fifth-placed finish for the second consecutive season after Huddersfield Giants were beaten by Catalans Dragons on Saturday night.
If Chris Chester's side can replicate that for a third year running, then, given the structure changes, Wakefield will be in the play-offs to fight for a spot at Old Trafford.
Hampshire continued: "If we are in this position next year, we are in the play-offs and we have got a shot at the Grand Final.
"We are fifth now, so if we finish fifth again then we are in the play-offs, so there is no reason why we can't make it."