Wolves have confirmed that Dean Saunders is the club's new manager, following Saturday's departure of Stale Solbakken.
Saunders, 48, guided Doncaster Rovers to second place in League One this season having started his managerial career with Wrexham.
A statement on the Wolves website read: "Wolves are delighted to confirm that Dean Saunders is to become the Club's new manager. Compensation has been agreed with Doncaster Rovers to allow the 48-year-old to take over at Molineux following Saturday's departure of Stale Solbakken."
Saturday's cup defeat at Kenilworth Road proved to be the final straw for a Wolves board who have watched Solbakken fail to get a side relegated from the Premier League last season back on track.
With just three wins in 16 they languish in 18th place in the Championship, with the club describing results as "hugely disappointing''.
Saunders is Wolves' fourth boss in less than a year after the departure last February of Mick McCarthy and the brief tenure of Terry Connor.
Information from the Press Association was used in this report