Wolves have appointed Stale Solbakken as their new manager and he will take over on 1 July.
The Norwegian, who was sacked by Cologne last month, will be officially paraded as Mick McCarthy's permanent successor next week.
Solbakken, 44, who played for Wimbledon during the 1997-98 season, had held talks with the club on Thursday.
Terry Connor, who took over following
is expected to be retained on the coaching staff.
Stale Solbakken factfile
27 February, 1968
- Playing honours:
58 international caps for Norway; Danish league title 2001.
- Managerial honours:
Danish league title 2006, 2007, 2009, 2010, 2011; Scandinavian Royal League winners 2006.
"I am delighted to be taking up the important challenge to manage Wolves," said Solbakken.
Chief executive Jez Moxey confirmed that the new manager would be formally introduced to the media on Monday.
Connor will manage the team for the final game of the season against Wigan on Sunday, completing the agreement made when he took on the position in February.
Former Sunderland manager
and ex-Charlton boss
were both interviewed for the job before Connor's appointment.
BBC Radio 5 live's Pat Murphy said that the decision to employ Solbakken was a gamble.
"In my eyes he plays a more attractive style of football than Mick McCarthy had Wolves playing, especially in the last couple of seasons. He prefers 4-4-2, but always gets his teams to play attractive football like he did at FC Copenhagen, where he won five titles in six years and the domestic cup. The Wolves fans can look forward to a better style of football.
He isn't your typical hard man. He has always had a good relationship with his players, they've bonded. His man-management skills are really strong but he also has a tough side to him. He's got the mix right."
"Solbakken has only got brief experience of the Premier League having played a handful of times for Wimbledon. Terry Connor is going to stay to ensure continuity. Wolves think that is important as Stale Solbakken finds his feet in England."
Solbakken moved into coaching just a year after being "technically dead" when
he suffered a cardiac arrest in a 2001 training session
while playing for FC Copenhagen where he was coached by England manager Roy Hodgson.
Following the Norwegian's recovery, he returned to the club in 2006 as manager and led them into the last 16 of last season's Champions League, as well as five league titles in six years.
Solbakken's success earned him a move to the Bundesliga with Cologne, but he was replaced by his predecessor Frank Schaefer shortly before the club were relegated from the German top flight.
The ex-midfielder won 58 caps for Norway as a player and represented his country at the 1998 World Cup and Euro 2000 finals.
relegation from the Premier League
was confirmed at the end of last month.