The Brit joined Williams in April last year and is set to be given an expanded role.
Wolff will receive more time in the simulator and will be the first to get behind the wheel of the FW35 when she drives the car at Idiada next month. She is also set to conduct aerodynamic testing.
"I really enjoy my time working with Williams and feel very much at home here," she said.
"Last year was a valuable experience and I certainly feel that I’ve developed a lot as a driver," added the former DTM racer.
"Increasing my role this year will further this progression and I can’t wait to get behind the wheel of the FW35 for the first time next month. I’m showing that women can play a role at the top level of motorsport and would like to thank Sir Frank Williams and the whole of the technical team for the trust they continue to show in me."
Technical director Mike Coughlan added "Susie has proved herself to be a valuable addition to our driver roster and her feedback during simulator sessions is second to none. As a result we will be stepping up her role this year and I’m looking forward to the progress we can make with Susie’s input in conjunction with that of Pastor [Maldonado] and Valtteri [Bottas]."