The former Wales international had only taken charge at Molineux in January from Stale Solbakken, but his failure to keep the club in the Championship has ultimately cost him his job.
The rumour mill regarding his replacement is already in full swing so, with that in mind, Sports Mole has profiled five of the early contenders that could be charged with the task of getting Wolves back into the second tier of English football at the first time of asking.
Fresh from his departure as manager of Millwall, former Wales international Jackett has found himself strongly linked with this vacancy. If the 51-year-old does want an immediate return to the management game, he would bring a strong knowledge of how to get promoted into the Championship. Back in 2010 he guided Millwall to success in the playoffs and kept them in the Championship ever since.
If any manager knows how to get a club promoted from League One into the Championship, it is Ferguson junior. During his two stints in charge of Peterborough United, the Cambridgeshire-based side have gone up to the second tier of English football twice. While he is known to be loyal to the Posh and their chairman Darragh MacAnthony, the relegation of both clubs means that they will be at the same level next season and the chance to try to rescue a fallen giant could appeal to the Scot. He also has ties with Molineux, having made over 100 appearances in the gold shirt during his playing career.
The 46-year-old was actually linked with the managerial job at Wolves before it was given to Saunders in January. Of course, at that time they were still a Championship club and whether the Scottish boss would be interested in dropping down to the third level remains to be seen. Having said that, he has been out of work since leaving Bolton Wanderers in October last year and is known to be keen on a return to management.
Once again, the MK Dons have failed to gain promotion from League One. It was Robinson's third attempt and as an ambitious young manager, the Liverpudlian may feel that it is the right time for a change of scenery. Wolves would be able to offer him a much bigger budget, which could well tempt the 32-year-old. What he can offer Wolves is a decent working knowledge of League One and the best players at that level of football.
Following his disastrous stints in charge of the national team and Nottingham Forest, McClaren has to rebuild his reputation on these shores. While he may not want to drop down to League One, he could make himself the flavour of the month again by leading Wolves back to the Championship at the first attempt. As he is out of work, he won't cost Wolves any compensation and he has shown during his time with Middlesbrough and FC Twente that he is capable of guiding clubs to success.