The young attacking midfielder made his first-team debut against Alloa Athletic in the Scottish Cup, before making his first league appearance as a second half substitute in the match against Aberdeen.
“It’s great to see Dylan commit his future to the club,” manager Stuart Kettlewell said.
“We have had to fend off some interest from some big clubs here but I think Dylan understands the path and the journey the first-team here at Motherwell.
“He’s had a taste of that first-team action and when you see the likes of Lennon Miller, Mark Ferrie and Luca Ross all involved this season and making progress, it gives that extra incentive for a young player to try and kick on.”
“I’m really pleased to sign this deal,” Wells added.
“Having come up through the ranks, I’m even more eager to obtain more playing time now that I’ve had a taste of first-team action this season.
“The first step was closing the deal; now I have to get down on my knees and prove to everyone what I am capable of.”
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