The utility-back came through the club's academy and has gone on to great things after being given a chance by director of rugby Dai Young as a teenager.
Daly currently has 13 England caps to his name and played in all three Tests for the British & Irish Lions during this summer's tour of New Zealand, kicking a penalty in the decider.
After making his debut in 2010, he has made 157 appearances for Wasps and is now set to continue his stay after signing a new deal for an undisclosed length of time.
The 24-year-old admits he is pleased to have settled his future and is confident he is going to enjoy plenty of success over the next few years.
"I'm really pleased to have extended my contract with Wasps," he told the club's official website. "The great thing about this squad is that many of us have grown up together. We've been through some tough times and have started to enjoy some much better times.
"We need to improve across the board, but we have a great platform to build on and I feel our squad has the talent and mind-set to continue challenging at the highest level."