The left wing-back has progressed well during his two years at Molineux and looks set to kick-on during the 2019/20 campaign after an impressive pre-season.
The youngster, who is still just 20, signed for Wolves initially on loan in June 2017, following Nuno Espirito Santo’s arrival at Molineux.
Vinagre played his part in the club’s promotion to the Premier League, scoring his first senior goal in a 4-0 victory over Burton Albion in September 2017.
The following summer Vinagre made his move from Monaco a permanent one, adding to the Portuguese contingent inside Nuno’s squad.
Following promotion, the youngster featured in 17 top flight games as Wolves adapted impressively to Premier League football and qualified for the Europa League.
On Vinagre’s new deal, sporting director Kevin Thelwell said: “Ruben has developed impressively since joining the club two seasons ago and is an important part of Nuno’s squad.
“As the club has grown in recent times, Ruben has done the same, and performed commendably when called upon in the Premier League last season.
“Off the pitch, he provides a mature head for someone so young and is a popular personality inside the dressing room.
“We’re excited to watch and help Ruben develop further this coming season and, after his impact in the two Asia Trophy games, we hope he’ll kick on once again.”