"It's no secret that the board and Glenn are disappointed with the team's failure," chief executive Jez Moxey said.
"That said, Glenn is a proven manager and the board feels confident that he has the skills needed to rebuild the squad over the coming season."
Hoddle Stays
Amid speculation that Hoddle would be replaced after failing to get Wolves anywhere near a promotion place this season, the board announced on Wednesday that the former Tottenham and England boss will be given another shot at taking the club back to the top-flight.