Jota is currently on a season-long loan spell at Molineux, with the 21-year-old netting a total of 12 goals in 31 appearances in all competitions.
Wolves have the option of turning his contract into a permanent deal at the end of the campaign, and the Championship leaders have confirmed that they intend to keep the Portuguese attacker in the West Midlands.
Executive chairman Jeff Shi told the club's official website: "Diogo has been an important player for Wolves this year and his abilities are clear for everybody to see.
"As a management group, our aim is to provide the head coach with a playing squad that gives him the best possible chance to succeed and I believe Diogo is certainly a player that does that, and will continue to do that beyond this season. Whilst the agreement won't be fully confirmed until the 1st July, by making this statement of our intent, it again allows us to be as open and honest with the fans as we can be with regards to how we wish to take the club and the squad forward.
"Of course, in addition to Diogo, we have a number of other players who are also part of the playing squad under loan agreements, and we will continue to make assessments of the whole playing group as we progress through the season. By moving to confirm terms with Diogo, and the signing of Helder Costa last winter, it shows that we can provide a great environment for loan players to thrive and develop in Wolves, and we are sure that this will continue with other players who have come in and successfully committed themselves to the club.