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(Image: GETTY)

Nuno, 44, has agreed a three-year contract to stay with the Premier League new boys until 2021.

The Portuguese chief, who was 12 months into a three-year agreement, is believed to have increased his pay to £3m a year.

Nuno led Wolves to the Championship title in his first year in charge and rejected the chance to talk to Everton last season.

Arsenal enquired about him towards the end of Arsene Wenger’s reign before appointing Unai Emery.

(Image: GETTY)

Chairman Jeff Shi believes keeping Nuno is key to Wolves’ hopes of establishing themselves in the top flight and has backed him with serious funds.

Wolves have made two summer signings, with Mexico striker Raul Jimenez and Portugal keeper Rui Patricio snapped up and a £16m deal in place for Man City wing back Olegsandr Zinchenko.

Zinchenko, 21, is still to decide his future, with Newcastle also in the hunt for the Ukraine international.

Nuno follows £15.8m record signing Ruben Neves in signing a new deal after the Portuguese midfielder penned an improved five-year contract recently.