Wolves have confirmed head coach Vitor Pereira has signed a new three-year contract with the Premier League club.
Pereira replaced the sacked Gary O'Neil in December and his previous deal was due to expire at the end of this season.
Wolves are bottom of the table after losing their first four league games, but the club's hierarchy have placed their trust in the 57-year-old Portuguese.
Chairman Jeff Shi said: "Vitor has made a very positive impact during his time at Wolves. He's brought clarity, energy and a team spirit that gives us a foundation to be successful.
"What he achieved last season was excellent, with a highly-competitive record, including six Premier League wins in a row and a deserved nomination for the manager of the season award.
"Now is a time for stability. Vitor needs time to work with the squad, to build a chemistry with new players, and we will do everything to support him and his staff."
Wolves were second-bottom when Pereira arrived at Molineux at the end of last year, but he guided them to a 16th-placed finish, 17 points clear of relegation.
His impressive turnaround included a club record six successive Premier League wins in March and April, while he is currently rebuilding his squad.
Wolves made six permanent summer signings and there were 11 departures, which included key players Matheus Cunha, Rayan Aït-Nouri and Fábio Silva.
Pereira added: "I'm very proud to be Wolves head coach. It's an honour for me.
"This is the club that gave me the chance to come to the Premier League, the best league in the world. The people here embraced me as a member of the family, me and my staff we feel very good in the city, among the supporters.
"That's why I really believe that with our work, with our supporters, with the support of the club, the fans and the city together, we will do it. We will increase our level, with ambition to make our supporters proud on the pitch."