Wolves have promoted assistant boss Terry Connor to manager until the end of the season.
The club sacked Mick McCarthy on 13 February in the wake of the previous day's 5-1 home defeat by Black Country rivals West Brom.
Wolves turned to Connor, 49, after Walter Smith, Alan Curbishley and Brian McDermott ruled themselves out.
"This is a decisive step which creates certainty. The players are fully behind it," Wolves owner Steve Morgan said.
"Since we made the difficult decision to part company with Mick, we have been through a diligent process of assessing potential candidates.
"Having spoken to a number of people we have drawn that process to a close and myself and the board are unanimous that Terry is the right man to lead the club for the remainder of the season.
"As a club, whether that be staff or supporters, we now all need to unite behind Terry and the players and secure as many points as possible over the next 13 games."
Connor has been at Wolves for 13 years and has served under four different managers, but this is the first time he has been in charge.
Chief executive Jez Moxey had initially targeted a more experienced candidate, describing the vacancy as "not a job for a novice", but failed to convince a series of managers that the role was for them.
Wolves travel to Newcastle on Saturday in 18th position after taking 14 points from their last 22 Premier League games.
But they are only separated from the two teams above them - QPR and Blackburn - by goal difference.
Former Wolves defender and England international Joleon Lescott has backed Connor to unite the players ahead of their trip to Tyneside.
"TC is one of the most influential coaches I have worked with in my career - and that includes everyone I have worked with. I owe him a lot," he said.
"He's a proper football man, and probably one of the most knowledgeable about the game.
"He had a lot of respect from the players at the time when I was there and I am sure that will be the same from the lads who are at Wolves now."
Although Steve Bruce, sacked by Sunderland on 30 November, was also interviewed, it appeared that Curbishley was the main focus of Wolves' initial attempts to fill the role.