Don Goodman told Sky Sports News HD that Ian Holloway would be the ideal man to take over at Wolves.
Wanderers are on the hunt for a new manager after sacking Mick McCarthy on Monday following a 5-1 home defeat to West Brom over the weekend.
Blackpool chief Holloway has galvanised Blackpool following their relegation from the Premier League last season and the Tangerines currently sit in the Championship play-off places.
And ex-Wolves striker Goodman believes the Bristolian could stimulate the Molineux side's campaign and drag them clear of the drop zone.
"Whoever comes in has got a very difficult job; 13 games to try and transform the fortunes of a team that has struggled for months", said Goodman, a Wanderers player from 1994-98.
"There are some great candidates; Alan Curbishley, Steve Bruce, Neil Warnock. These are lads that are currently out of work and Wolves wouldn't have any difficulty in speaking to them.
"I probably shouldn't say this, but I look at the job that Ian Holloway has done at Blackpool and I think Wolves are in similar predicament in that they haven't got bundles of money to spend.
"This season he has had to rebuild completely. It's almost a brand new squad, yet he's got them near the top of the Championship again.
"He may not want the job and he may not be available, but he is one that I would be interested in."
McCarthy took charge at Molineux in the summer of 2006 and led Wanderers to the Championship title at the end of the 2008-09 season.
Goodman believes the former Millwall and Sunderland boss can be proud of his achievements in the Black Country and doesn't expect the 53-year old to be out of the dugout for very long.
"Mick will be alright; he'll let the dust settle and then he'll reflect on five and a half successful seasons," added Goodman
"It's only really been the last few months that things haven't particularly gone his way. The rest of his tenure has been nothing but a success
"He can walk away from Wolves with his head held very high, safe in the knowledge that a lot of clubs will be courting his services."