Glenn Hoddle cited the club's budget and his own commitment as the main reasons for leaving Wolves last week, according to the Midlands outfit.
Hoddle was concerned at Wolves' lack of ambition
Hoddle met with Wolves chief executive Jez Moxey to spell out why he wanted to quit after a 19-month spell in charge.
"The first reason was his concern over the budget and whether he could do what he wanted with the money available," Moxey told the club website.
"He also said he did not feel 100% behind the job."
Moxey added: "When Glenn signed his contract 12 months ago it was made clear then that if we did not win promotion, because of the loss of parachute money and a likely fall in season ticket sales, the budget going into this season would have to be reduced.
"He was told we would have to sell players and he was aware of the situation with Joleon Lescott."
Centre-back Lescott was sold to Premiership side Everton in mid-June for £5m.
Moxey said he would have liked the former England manager to have made his decision earlier.
"Our view is that we would have preferred him to have done it at the May board meeting," said the Wolves chief executive.
"He accepted that but said he did not feel the way he does now at the time.
"I told him we were disappointed and angry but I accept his version of events.
"Despite what some might think, our relationship has been a strong and positive one."