Wolves have announced that Glenn Hoddle will stay on as manager at the club.
Hoddle was booed of the field against Brighton in April
Hoddle has come under pressure from Wanderers fans who are unhappy with the club's recent form and he was booed off the field against Brighton in April.
And chief executive Jez Moxey attacked Hoddle's failure to reach at least the Championship play-offs.
But after a board meeting Moxey said: "Glenn is a proven manager and we are confident that he has the skills needed to re-build the squad next season."
Moxey had previously criticised Hoddle's reign at Molineux describing the season as "a complete disaster."
And he reiterated the discontent at Wolves' failings this term.
"It's no secret that the board and Glenn are disappointed with the team's failure to secure automatic promotion or a play-off spot, especially as everyone was well aware of the likely financial restraints for next season if we didn't achieve promotion.
But the former England and Tottenham boss will now be given a tighter budget in which to re-build the squad for next season.
"During the meeting, we clearly articulated that the loss of the Premiership parachute payment means that there will be a reduced budget for next season," said Moxey.
"Glenn accepts this and is now looking at how best to shape his squad with the money available.
"Throughout this process, the club needs the support of its fans. Most clubs go through a period of rebuilding at one time or another.
"Our time is now and we need the fans to understand the realities of working within a tighter budget while sharing our optimism about the development of a younger first-team squad that will compete as hard as possible in next year's Championship."