Wolves assistant manager Terry Connor will take charge of the struggling Premier League team until the end of the season.
The 49-year-old Connor will be the temporary replacement for Mick McCarthy, who was fired last week with the team in the relegation zone with 13 matches left.
Wolves chairman Steve Morgan has been interviewing candidates, including former Sunderland manager Steve Bruce and ex-West Ham manager Alan Curbishley, but believes hiring Connor "is a decisive step which creates certainty."
Connor has been part of Wolves' coaching staff for the past 13 years and has worked under four managers.
His first match in charge is a trip to Newcastle on Saturday.