Coady, a hugely popular figure at the club, had a year remaining on his current deal with a further year’s option, but has now been rewarded for a string of fine performances with an extended deal.
Coady, who emerged through the Academy at Liverpool, is now approaching a century of Wolves appearances having joined from Huddersfield in 2015.
He has chalked up 93 appearances in all competitions for Wolves, part of 193 in a a career which included a year-long loan spell at Sheffield United in which they reached the FA Cup semi final.
Coady’s influence has also always been a vital part of the dressing room, and he has skippered the side in the absence of club captain Danny Batth on several occasions this season.
Having played most of his career as a central midfielder, Coady was also used as right back on several occasions last season, and has impressed in the centre of the back three during the current campaign to date.
“It is important for everybody that Conor has signed a new contract,” said Head Coach Nuno Espírito Santo.
“It is about the way we see things, and we know that since we started the players that were already here have been enjoying it.
“Conor has been a top professional since day one, and he always gives 100 per cent in each moment of his work.
“He has been fantastic this season in helping the team and this new contract is well deserved and recognition for all of his hard work.”