The 24-year-old made 12 appearances for Wakefield last season during a loan spell at Belle Vue.
"It's a good club to be at. I enjoyed my time here last season and think it's a great opportunity for me to set my position here," he is quoted as saying by BBC Sport. "All the boys are going to want to get stuck in and have a big season."
Owen leaves Castleford following a seven-year association with the club.