Ruddy’s new deal will keep him with Wolves until 2020 with the option of a further year.
The 19 year old, who began the season on loan ay Sky Bet League One side Oldham Athletic, has recently returned to Wolves to link up with Scott Sellars’ U23 squad.
Ruddy is delighted to have signed his new contract and feels that he is progressing well as a goalkeeper.
"I’m really pleased - I’ve thoroughly enjoyed my 18 months here and I feel like I’m progressing really well.
“The coaches and the staff have really helped me during my time here and I get on with everyone really well so I’m really happy to stay here for another couple of years.
“I had my first loan this season which was probably the best experience of my career.
“It was great to get some minutes on the pitch in men’s football.
“I think the coaches at Wolves got me ready for that during the 18 months that I’ve been here."
Wolves Academy Goalkeeping Aled Williams said, "He's deserved it, he's really got his head down during his time here and he's embraced all of the challenges that we've thrown on him.
"I think the loan experience at Oldham was great for him playing first team football - he's gone out and come back showing a great attitude.
"Now that he's come back we just want him to kick on from here and hopefully he will transition into first team football soon."
Kevin Thelwell, Wolves Sporting Director said, "we all recognise the high potential that Jack has got and we also understand at the football club how important it is to have your best young players remain at the football club.
"Jack has recently returned to the club after picking up some crucial first team experience during a loan spell at Oldham Athletic.
“We’re all really pleased with the progress that he has made and we are delighted to have tied him down to a longer contract."
