Vaughan, 31, made the switch from Canterbury Bulldogs in the off-season and his strong showings have been integral to Warrington's blistering start to the season.
Vaughan, who won two caps for Australia, initially signed a two-year contract, but he and his family have settled quickly into life in the UK and he had no hesitation in extending his stay for at least one more season.
"I'm excited to extend my stay," Vaughan told Sky Sports. "It's been very enjoyable so far and hopefully we can keep the ball rolling for a successful year.
"We've really enjoyed our time here so far with the family, and with the boys playing such great football as well it's a big factor.
"I want to be a part of a great squad and it's a huge opportunity this year with the squad we have.
"The club has been great to me and my family, the transition is nice and easy, and both parties wanted to agree and I've been lucky enough to do that."
The Super League leaders head into Friday night's top-of-the-table clash against Wigan buoyed by the news that stand-out half-back George Williams has also signed a contract extension.
Williams, the star performer in England's run to the World Cup semi-finals last year, has been one of the main instigators of the Wolves' fine start, in which they have reeled off eight straight wins.
The 28-year-old, who had been attracting interest from clubs in the NRL, has signed an extension until November 2026.
Williams said: "I'm really happy to nail my future down. We've got a great group here and I'm excited for what's to come.
"As a half-back you're probably hitting your prime years at my age. Hopefully my best years are ahead of me, we can keep winning and doing my bit for the team."
With agencies
16°C