Reading manager Brian McDermott has penned a new contract until the summer of 2015 to cool talk linking him with the vacant Wolves job.
Wolves were thought to be targeting the Royals boss as a successor to Mick McCarthy, who was sacked by the Premier League club early last week.
But McDermott, who was previously operating under a 12-month rolling contract, has committed his future to Reading for another three-and-a-half years.
A statement on the Championship club's official website read: "Since the announcement of potential investment from Thames Sport Investment Ltd, securing Brian on a long-term contract has been one of (chairman) Sir John Madejski and (prospective owner) Anton Zingarevich's top priorities, and with speculation this week linking our manager to the Premier League, the timing of this agreement is absolutely perfect for our club."
Reading chairman Madejski added: "I am absolutely delighted that Brian is signing and this is a very, very important day for our club.
"Everybody knows how highly we rate him and he has more than repaid the faith we showed when we appointed him. He is a top manager."
McDermott became Brendan Rodgers' successor as Reading manager in January 2010 after a successful spell in a caretaker role.
He has led the Royals to two FA Cup quarter-finals, as well as guiding them into the Championship play-offs last season.