Wolves have received an important boost with Matheus Cunha who signed a new four and a half year deal with the club.
The attacker is linked to various clubs during the January transfer window, including Arsenal, but he will now stay in Wolves, as reported by the official website of the club.
It is understood that the new deal from Cunha includes a release clause of £ 62.5 million that will be active from the summer.
Villa and Nottingham Forest are among the other Premier League clubs that are connected to Cunha.
Cunha has enjoyed an excellent season so far, including scoring in the 2-0 victory of Wolves against Aston Villa on Saturday.
In total he scored eleven goals and gave four assists in 23 Premier League performances so far this campaign.
Cunha initially joined Wolves on loan from Atletico Madrid in January 2023 before he made the move that summer permanent.
Wolves will hope that keeping Cunha will help them to prevent relegation from the Premier League this season.
The side of Vitor Pereira is currently in 17th place and two points are free from the relegation zone.
Wolves chairman Jeff Shi said: 'Matheus has been on a great journey for the past two years and it was a privilege to see him grow in a large part of the Wolves family.
'Matheus has a good relationship with each in Compton Park, his personality is contagious to the people around him, and we hope that this new contract will give the group a boost.
'We can all see his quality on the field, but he has developed into a leader of the group, and we are delighted that he has signed a new contract. It is always important for us that we reward our strongest and most impactful players, and Matheus deserves this new deal. '
Wolves Sports director Matt Hobbs said: 'The new contract is a reward for what Matheus has done and symbolizes his interest in the field for us. It is something he has earned because of everything he has given us and will continue to give us.
'Matheus loves the club, loves the fans and really appreciates the chance the club has given him. The fans took care of him and he loved being here, so it was a really positive experience for both parties.
'His talent is unthinkable and he is a real winner. He wants us to achieve our goals now, and when a player of his quality shows that he is with you and for the fight, it is a big lift for everyone. Now he has to do what he did, and even more. I expect that he will fight through the second half of the season, because we need everyone in it. '
Wolves are the next in action on February 9 when they are fourth round in the FA Cup FA Cup.
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