Wolves have parted company with head coach Rob Edwards, with Cesar Peixoto expected to replace him.
Edwards was appointed last November, with Wolves paying compensation believed to be in the region of £3.8million to prise him and assistant Harry Watling from Middlesbrough.
The former Luton Town boss could not save Wolves from relegation as they finished bottom of the table with 20 points, winning only three games.
However, there were some results that suggested reason for optimism in the latter stages of the campaign, with Wolves beating Liverpool and drawing with eventual champions Arsenal at home in March.
Edwards was expected to lead Wolves in their push to secure an immediate return to the Premier League and was said to have played a key role in them clinching the signings of Kieran Trippier and Raul Jimenez.
But a day after the completion of the latter deal, Wolves announced they had elected to dismiss Edwards amid reports that Peixoto, coach of Primeira Liga side Gil Vicente, is set to take over.
A Wolves statement read: “Following a comprehensive review at the conclusion of the season, the club has determined that a change in leadership is necessary as Wolves enters the next stage of its development.
“While the club recognises the significant challenges faced by Edwards and his staff during their tenure, and acknowledges the commitment and professionalism they demonstrated throughout, it ultimately concluded that a different sporting direction would provide the strongest platform for future success.”
Executive chairman Nathan Shi said: “I would like to personally thank Rob and his staff for everything they have given to Wolves during what has been a very difficult period in the club’s recent history.
“Rob accepted the challenge of returning to Wolves at a time when the situation was extremely challenging, and throughout his time here he has conducted himself with professionalism, integrity and commitment.
“This has been an extremely difficult decision. Following the end of the season, we undertook a thorough review of every aspect of the football operation.
“This process involved careful consideration of many factors and extensive reflection on what we believe is required to help the club progress over the coming years.
“Our decision was not about character, professionalism or dedication. It was about determining what we believe gives Wolves the strongest opportunity to move forward from a sporting perspective.
“While there were positive signs and areas of progress, we ultimately concluded that a different football direction would better align with the style, identity and level of competitiveness we want to establish at the club.
“It would have been easier to continue with what was familiar. However, leadership is not about choosing the easiest path, but about making the difficult decisions we believe are right for the future of the football club which will put Wolves on the strongest platform to move forward.
“Our ambition is to build a football club capable of achieving sustainable success. That requires clarity of vision, alignment throughout the football operation and the courage to make difficult decisions when we believe they are in the best interests of the club.”
Wolves set to appoint another Mendes client
Peixoto was appointed by Gil Vicente in March 2025 with the brief of securing Primeira Liga survival.
He achieved that feat as they finished seven points clear of the drop, and then led them to a hugely impressive sixth-place finish in the 2025-26 campaign.
Now it appears he will get the opportunity to try to lead Wolves to promotion from the Championship.
Peixoto is represented by the Gestifute agency, led by Jorge Mendes, which has a strong relationship with Wolves’ Chinese ownership.
Wolves have previously appointed three Gestifute clients, Vitor Pereira, Bruno Lage and Nuno Espírito Santo, as head coach, while the connection has facilitated signings such as those of Pedro Neto and Ruben Neves.
