Wolves have shelved their search for a new manager after being rejected by top target Michael Beale, who will stay at Queens Park Rangers.
The Premier League side, who sacked Bruno Lage earlier in October, had also been snubbed by Julen Lopetegui. Caretaker boss Steve Davis will, therefore, remain in charge for the rest of 2022. will stay in charge at Wolves until the new year.
Chairman Jeff Shi said: "In the short time Steve and his team have been in interim charge of the first-team, we have already seen improvements to the group, with the players responding well to their methods and the changes they have started to implement.
"Steve understands the culture and standards set at this club, and we want to give him and his team clarity on their positions and allow them the best possible opportunity for success.
"While there are no outstanding candidates to appoint on a permanent basis to the head coach position, we have complete faith in their ability and leadership to continue their roles into the World Cup break and new year.
"We have no plans to rush our search for a new permanent head coach and will not compromise in any way our approach to appointing the person we believe to be the perfect fit for our club, our squad and the role of head coach at Wolves."
Davis will continue to be assisted by James Collins and Tony Roberts and the club will look to extend the coaching team to provide more support.
Former coach Rob Edwards and ex-Lyon coach Peter Bosz were interviewed while Nuno Espirito Santo, who led the team from 2017 until 2021, was under consideration.
