Lage had been in charge at Molineux since June 2021, guiding Wolves to a 10th place finish in his first Premier League season.
During that campaign, Lage was awarded the Premier League Manager of the Month for January and guided the club to memorable victories at Aston Villa and Manchester United.
While improving Wolves’ points tally from the 2020/21 season, Lage developed young players such as Maximilian Kilman and Rayan Ait-Nouri and oversaw the squad’s transition, which brought the likes of Jose Sa and Matheus Nunes to the club.
Wolves chairman Jeff Shi said: “Bruno is an excellent coach, a hardworking and dedicated manager, and a warm, wise and honest man.
“He and his staff have been a pleasure to work with throughout their time at Wolves, so it is with much sadness that we have had to make what has been a difficult decision.
“I honestly have no doubts about Bruno’s ability, and I’m sure he will succeed elsewhere, however the team’s form and performances over the last few months mean that we have no choice but to act.
“On behalf of everyone at Wolves, I would like to place on record our gratitude to Bruno and his coaching team for all their efforts during their time with the club, and wish them the very best for the future.”
Wolves can confirm that experienced coaches Steve Davis and James Collins will prepare the team this week for the trip to Chelsea.
