Caretaker boss Steve Davis will stay in charge at Wolves until the new year.
The Premier League strugglers have opted to give Davis a longer spell after QPR head coach Michael Beale rejected the chance to move to Molineux.
The snub also followed Julen Lopetegui's decision to turn Wolves down for personal reasons.
Wolves have been looking for a new manager since sacking Bruno Lage earlier this month and Davis has been in charge for three games.
Chairman Jeff Shi said: 'In the short time Steve and his team have been in interim charge of the first-team, we have already seen improvements to the group, with the players responding well to their methods and the changes they have started to implement.