"This is a reward to Sylvan for this outstanding goalscoring for the last two years," Wolves chief executive Jez Moxey told the club's official website.
"To win the Golden Boot two years running is a superb achievement and we want him to feel absolutely magnificent going into the Premier League, where hopefully he can do exceptionally well.
"It's a big step up but he's really happy about being here and sees his long-term future here too, and we feel we have to act accordingly.
"He has also given great value for money and he's been literally magnificent in every aspect."
Ebanks-Blake has scored 37 league goals in 61 appearances for Wolves since joining the club from from Plymouth Argyle in January 2008.