Veteran defender Craddock, who will be 36 next month, was offered a new deal at the end of last season and has now finally put pen to paper.
It means he will extend his spell at Wolves into a ninth season and he has made more than 200 appearances since moving from Sunderland.
Morgan said: "He is an old head and, having someone like him around the training ground and dressing room, is someone the younger players can turn to.
"We've got a very young squad on the whole so the influence Jody gives, off the pitch as well as on it, is fantastic.
"We are delighted to have Jody for another year. He is a great professional."
Craddock was offered a new deal after helping Wolves to survive in the Premier League for a third successive season.
Craddock knows he will face competition for his spot with Reading centre-back Matt Mills amongst Wolves manager Mick McCarthy's potential targets, but he is prepared to battle.
He said: "It's good news that the contract is all done and dusted and I can concentrate on the year ahead.
"This time last year I was thinking it would be my last season so to get another 12 months is a big achievement.
"It was all done basically at the end of last season and was very straightforward.
"It was just a matter of time while the contract was drawn up. I'm pleased and proud I've managed to get a new deal.
"There may be competition but it's never a problem for me when a new centre-half comes in.
"It's all about what benefits the club. If I have to scrap it out with another centre-half, so be it.
"I just need to give myself the best opportunity to be involved at the start of the season.
"It's a young man's game in terms of physique and how fit the players are, but at some point you do need the experience as well."
Craddock was Wolves' player of the year for the 2009-2010 campaign, but injury problems meant he missed most of last season before returning for the finale of the fight to stay up.
Source: Team Talk
Source: Team Talk