"I've signed a one year extension and I'm pleased to have it sorted out," he told the clubs official website.
"It means I've got another year after this and means I can get my head down and concentrate on my football without having to worry about being out of contract at the end of the season.
"I've enjoyed my time at Wolves. There's been a few ups and downs but that happens at any football club.
"When I first came here my aim was to try and help get Wolves in the Premiership and I managed to do that.
"Unfortunately we weren't able to stay there so we've got to try and do it all again this season."