Former Porto boss Nuno Espirito Santo will become Wolves' new boss after Paul Lambert's exit.
The 43-year-old is expected to be appointed the club's fourth manager in 10 months in the next 48 hours, it is understood.
Lambert left on Monday, just six months after joining, following a club review of football operations which took place at the end of the season.
The Scot had only joined in November but was unhappy at Wolves' stance on new signings with super agent Jorge Mendes, a close associate of owners Fosun, having a large say in deals.
Espirito Santo is in line to replace him at Molineux after leaving Porto earlier this month halfway through a two-year deal.
The Portuguese giants finished second in the Primeira Liga, six points behind Benfica, and finished trophyless for a fourth consecutive season.
Sheffield Wednesday head coach Carlos Carvalhal had been one of the names linked to the job in port but the has since agreed a new deal to stay at Hillsborough.
Espirito Santo was also in charge of Valencia between 2014 and 2015 and guided them to fourth in LaLiga in his only full season in charge.
He will join after Lambert became the third head coach to leave, following Kenny Jackett and Walter Zenga, since owners Fosun bought the club last July.
First team coaches Stuart Taylor and Rob Edwards, and head of sport science Tony Daley, have also left.
A club statement read: "Wolves and Paul Lambert have agreed to part company following a football review which took place at the end of the season.
"The club would like to place on record its thanks to Paul for his dedication and professionalism during his time at the club, which included some memorable victories, and wish him all the best in his future career.
"In addition, first-team coaches Stuart Taylor and Rob Edwards, and Head of Sport Science Tony Daley, will also be leaving Wolves with immediate effect.
"As part of the coaching restructure, the club are currently in discussions with Pat Mountain regarding the possibility of him taking up a role within the Academy.
"Tony (Daley) and Rob (Edwards) have given many years of loyal and committed service to Wolves, and the club would like to thank them for their substantial contributions over a long period of time.
"Along with Paul, all three departing members of the backroom staff leave with the club's best wishes."
Wolves finished 15th in the Sky Bet Championship this season.