The veteran defender's name appeared on a Premier League list of players released by their clubs this summer.
But Wanderers expect to agree a new deal with the 35-year-old before pre-season.
A message on the club's official Twitter feed said: "Don't read anything into inclusion of Jody Craddock on list of released players.
"Just procedure from league. He is being offered new deal."
Craddock will be 36 in July but returned from injury in the spring to play a key role in Wolves' successful top-flight survival fight.
Source: Team Talk
Source: Team Talk