Wolves owner Steve Morgan has placed the Championship club up for sale after eight years in charge.
Liverpool-born Morgan, 62, who founded the Redrow house-building company, will step down from the board with immediate effect.
Chief executive Jez Moxey will manage the club's day-to-day business affairs.
A club statement said: "Steve's ongoing commitment and financial support to Wolves will continue until a new owner can be found."
Cheshire businessman Steve Morgan had previously tried to buy Premier League giants Liverpool prior to taking over Wolves from Sir Jack Hayward in August 2007.
After 17 years in charge, Hayward's wish then was that "we did not want to go the way of so many clubs and hand over to foreign investors".
Morgan paid a nominal £10, alongside a guaranteed £30m investment, which included the construction of a new stand at the North Bank end of the stadium.
Morgan's decision follows mounting criticism from fans in the last few weeks about the club's perceived lack of investment and the sale of popular defender Richard Stearman to Championship rivals Fulham.
The club will make no further comment.
BBC WM's verdict on Morgan's exit, Mike Taylor (Wolves reporter)
"With the club declining to comment, it may be some time before we discover why Steve Morgan has made the surprising decision to seek a buyer.
"There will be no end of speculation, much of it no doubt suggesting that he is unable or unwilling to offer enough investment to enhance the club's chances of returning to the Premier League.
"Whatever the truth is, any such speculation will obscure the more pressing issues, which are whether Morgan will find it any easier to dispose of a large West Midlands club than neighbouring owners at Albion and Villa.
"If it takes time, how much will he be prepared to invest to keep the club up with the relentless scramble for promotion in the interim, if that's what it takes."
The fan's view from the North Bank - John Bray
"Steve Morgan is a hugely successful house builder. But as the 'For Sale' sign is hammered into the Molineux turf, not many Wolves fans will remember him as a hugely successful football club chairman.
"Yes, he took Wolves into the Premier League - but he also took us, rather embarrassingly, into League One.
"He fired Mick McCarthy after a humiliating defeat against West Brom, but could offer no Plan B as we slid pathetically out of the Premier League.
"Then he left us bemused by the hiring and firing of Stale Solbakken. Then he left us bemused by the appointment of Dean Saunders.
"Then he got it right as Kenny Jackett rebuilt Wolves from the depths of League One, but now we are bemused again. And I sense growing anger among fans.
"We are drifting along in the bottom half of the Championship when last season we were strong contenders for the play-offs."