Connor spent 13 years at Molineux in various roles, including a 13-game spell as manager at the end of last season following Mick McCarthy's departure.
However, there was seemingly no place for Connor under Stale Solbakken's regime, and the 49-year-old has expressed his disappointment at how his time at the club has ended.
"I have spent 13 years working for the club in many varied roles, and while there have been plenty of ups and downs along the way I have to say it has been a fantastic time for me. I can't deny that I am very disappointed with how things have ended but, for the rest of the time, I have loved every minute of working for Wolves," said Connor in a statement on the club's official website.
"There have been some tough challenges both for me and the club during those 13 years, but I am leaving only with happy memories particularly of the success we have enjoyed in recent years in winning the Championship title and staying in the Premier League for three seasons.
"Wolves is a fantastic club with fantastic staff – I said last season how proud and honoured I felt to be manager for 13 games but to be honest that pride extends to all of the time I have spent at Molineux. It has been an honour and a privilege to work for such a special club with great supporters and I have met some wonderful people along the way."
During his spell as manager, Connor failed to win a single game, taking just four points from a possible 39.