The 32-year-old Australian signed a one-year deal with reigning Super League champions Wigan in September.
Bowen, who joined the Warriors from NRL side North Queensland Cowboys, has scored 13 tries in 17 appearances.
'Sam Tomkins is no Matty Bowen'"I am very happy to stay for another year. I couldn't be happier," Bowen told the club website.
Speaking to BBC Radio Manchester, coach Shaun Wane added: "He wants to stay, he loves it round here and he loves it at this club."
Bowen, who has won one cap for Australia, was signed on the same day that Wigan announced the departure of England international Sam Tomkins to New Zealand Warriors for a world-record fee.
After making a slow start to his career in England, his form has been key to Wigan's rise to third in the Super League table.
He crossed twice in Saturday's win against Catalan Dragons, taking his tally of Super League tries for the season to 10.
Wane continued: "His form at the minute is outstanding, and to have Lewis Tierney and Ryan Hampshire learning from him for another year is a really good shot in the arm for us.
"I've watched him for many years in the NRL. It took time to find his feet but now you can see he's relaxing and he's playing really well. He's an outstanding talent."
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