Former Spain, Real Madrid and Sevilla coach Lopetegui replace caretaker manager Steve Davis, who was put in charge of the team following Bruno Lage's dismissal last month.
We are delighted to announce Julen Lopetegui will take charge as our new head coach on Monday 14th November.— Wolves (@Wolves) November 5, 2022
Lopetegui will take up the role after the club's league fixture against Arsenal on November 12. The 56-year-old had been linked with a move to Wolves last month, but initially turned down the offer, according to reports in British media.
"Julen is a top coach, with excellent experience at an elite level of the game, and we are very pleased to have agreed on a deal to bring him to Wolves," Wolves chairman Jeff Shi said in a statement.
"Since the very beginning, Julen has been our No 1 choice to manage Wolves, and we look forward to welcoming him and his team when they join us in the coming weeks."
Lopetegui began his coaching career in Spain's youth set-up, before spells at Rayo Vallecano in the Spanish second division and at Portuguese club Porto.
He took over as Spain coach in 2016 following the retirement of Vicente Del Bosque, leaving to become Real Madrid manager in 2018. He was dismissed just three months into his stint with the Spanish giants.
Lopetegui's most successful foray into club management came at Sevilla, leading them to the Europa League title in 2020, but he was sacked by the LaLiga side last month after a poor run of results left them 17th in the standings.
Wolves, 19th in the league standings with 10 points from 13 games, host Brighton & Hove Albion later on Saturday.