Joao Moutinho has signed a new deal to stay on as a Wolves player for the 2022-23 campaign.
The Portugal international had become a free agent on July 1 when his previous contract at Molineux expired.
He had been tipped to join a new club, but Wolves confirmed on their official website on Monday that the 35-year-old has agreed a new one-year deal.
Talks over fresh terms had dragged on as Moutinho was reportedly holding out for a two-year extension, but Wolves director Scott Sellars is pleased an agreement was reached.
“In Joao’s time at the club, he’s been vital, bringing real experience and quality to the group, so to get him re-signed is a massive boost for us,” Sellars said.
“With contracts, it’s about getting to a place where everybody’s happy, the club and the player, and it isn’t always easy.
“But in the end what matters is the outcome and we’re very happy with it.
“He’s a huge influence in the dressing room, with the younger players, and sets standards that they follow.”
Moutinho is heading into his fifth season as a Wolves player and has already chalked up 176 appearances for the Premier League side, 39 of those coming last season.