Wagg performed impressively with bat and ball for Shropshire during his first season as the county’s professional.
He finished top of both the batting and bowling lists in Western Division Two of the National Counties Cricket Association Championship for the 2021 season. Wagg struck 453 Championship runs in four matches, including two hundreds and a half-century, at an average of 56.63.
The efforts of the experienced Wagg, who also played for Warwickshire and Derbyshire earlier in his career, saw him score more runs than any player in the four divisions of the NCCA Championship.
He also impressed with the ball in Western Division Two, taking 22 Championship wickets at 13.64 apiece.
Shropshire County Cricket Club chairman John Hulme said: “We are delighted that Graham has re-signed for Shropshire for next season after agreeing terms.
“He remains a very accomplished performer. He scores runs, takes wickets and is quick in the field. He is well liked and respected in the dressing room, as well as being popular with Shropshire supporters.
“To secure the services of Graham for another year, in the face of competition from others, has been fundamental to our plans for next season.”
Wagg said he enjoyed his first year with Shropshire and is looking forward to next season.
Wagg added: “There’s a great bunch of lads in the Shropshire squad. They have a great work ethic and the improvement I saw at the club last season was really pleasing. I enjoyed it and had a half decent year myself.
“I suppose the pressure that was on me, from coming out of the professional game to play National Counties cricket, the expectation’s a lot higher. There was pressure for me to deliver, but on most occasions I managed to, so that made life easier.
“Everyone at the club has been fantastic, so it was an easy decision for me to re-sign for Shropshire.”
Wagg enjoyed a long and successful career in first-class cricket.
He spent 10 years with Glamorgan, which included a testimonial season in 2019, before joining Shropshire ahead of the 2021 season.