The 25-year-old - who has featured three times in the 2005 Six Nations against Scotland, England and France so far - has bolstered his contract until the end of next season, despite the fact that Wasps are yet to appoint a replacement for departing director of rugby Warren Gatland.
O'Connor - who earns his sixth Test cap against Wales on Saturday - said: "I'm very happy to be at Wasps next season. Playing at Wasps is a great privilege.
O'Connor has scored four tries in 18 appearances for Wasps this season, and arguably had his best Test appearance in Ireland's 19-13 defeat of England earlier this month - putting in an exhaustive 14 tackles in his first full 80 minutes.
Wasps assistant coach Shaun Edwards added: "Obviously we are very pleased. We have got two very good sevens in Johnny and Tom Rees."