Wolves are set to open talks on a new contract for manager Gary O'Neil at the end of the season.
The 40-year-old was appointed only five days before Wolves' opening game at Manchester United after Julen Lopetegui left Molineux in frustration at the recruitment policy.
Ex-Bournemouth boss O'Neil has taken Wolves into the top half of the table and the FA Cup quarter-finals.
The club now want to improve the three-year deal O'Neil signed in the summer.
"That's naturally where this is going, he's done well enough to have that conversation," said Wolves sporting director Matt Hobbs.