Leicester deservedly went in front through Anthony Knockaert's effort and went into the break ahead.
Read how the action unfolded below.
Hello everyone and welcome to tonight's coverage of the Championship clash between Leicester City and Wolverhampton Wanderers.
This promises to be a very interesting encounter indeed. Leicester are on a fine run of form in the league, with 12 points coming from 12 to raise hopes of a potential automatic promotion place.
By contrast, Wolves haven't won in six league games, with just two points coming since victory at Blackpool before Christmas. They have changed manager in that time but Dean Saunders has yet to bring an improvement in fortunes.
Team news coming right up.
LEICESTER XI: Schmeichel; De Laet, Konchesky, Drinkwater, Morgan; Marshall, King, Keane, Knockaert; Nugent, Wood
Leicester subs: Vardy, Dyer, Logan, Waghorn, Gallagher, Wellens, Futacs
WOLVES XI: Ikeme; Foley, Batth, Berra, Ward; Sigurdarson, Henry, O'hara, Doumbia, Sako; Ebanks-Blake
Wolves subs: De Vries, Margreitter, Davis, Edwards, Peszko, Doyle, Cassidy
It's largely as expected from Leicester. Anthony Knockaert passed a late fitness test and his presence in the midfield will be a big boost to his teammates. Chris Wood is also recalled to the lineup after being on the bench against Huddersfield.
For Wolves, Roger Johnson starts his three-game suspension so it's a big night for Danny Batth who makes his full league debut in defence. Otherwise it's a similar-looking lineup, with Bjorn Sigurdarson coming in for Kevin Doyle to play in behind Sylvan Ebanks-Blake.
In the reverse fixture back in September Wolves somehow clung on for a 2-1 win and they will certainly take another fortunate victory tonight.
However, Leicester have lost only one of the last 20 in the league against Wolves at home, so history is not in the away side's favour. That defeat came on the last day of the season 4-1 in 2007.
It'll be good to get away from the transfer drama that has been unfolding today. Wolves did, however, sign young Welsh midfielder Lee Evans earlier today.
Nigel Pearson's side have dropped just four points this season from winning positions. That's the fewest in the league, so Wolves will need to score first to come out of this one with a much-needed win.
A little under five minutes left until kickoff, time for a quick look at the odds. As expected, Leicester are big favourites; the best you can get for them is 1/2, while Wolves can be backed at around 6/1.
Here's what Wolves boss Dean Saunders has said to Sky Sports News about his side's chances: “We’re playing against a good team who score a lot of goals and have some really good players, but we’ve also got some good players. It’s about taking those valuable points to start climbing up the league."
We're off! Wolves get us underway.
Solid enough start for Wolves, who are keeping the ball fairly well early on.
CHANCE! Knockaert weaves through the Wolves defence after latching on to a David Nugent pass, but he cannot find the target with his effort. A decent early chance.
Remember when I said Wolves were passing well? Forget that, Jamie O'Hara just gave it away to Nugent who shot wide from about 25 yards. At the other end, though, the ever-impressive Bakary Sako wins a corner.
Incredibly ambitious effort from Knockaert who shoots from fully 35 yards, but it was never troubling Ikeme.
Wolves are again passing neatly. Paul Konchesky fouls Sigurdarson with a push going up for a header and Wolves can get this in the box... but too easy for Schmeichel with the delivery.
Leicester break and Batth is forced to clear behind with a sliding tackle on Knockaert.
It's all Knockaert in the opening nine minutes. The ball comes to him this time on the right, he cuts on to his left and shoots wide of the near post. If he doesn't score today I'd be surprised.
Leicester are starting to dominate this in terms of possession. Wolves are defending stoutly, but the ball keeps coming back towards their box.
You can see why Leicester have such a good defensive record. They play it out patiently from the back and all the defenders - plus Schmeichel - are comfortable on the ball.
Really good passing from Leicester involving Drinkwater and King. The latter finds Konchesky who crosses but Wolves again manage to clear.
CHANCE! Schmeichel flaps at a cross and it falls to Sako. He fires in a cross-shot but Ebanks-Blake cannot get a touch.
Suddenly Leicester are mishitting passes. Knockaert this time gives it away to Sigurdarson but Sako's shot was eventually blocked.
CLOSE! Chris Wood chests down superbly about 35 yards from goal, takes another touch and fires towards goal but it goes about a foot over. Cracking effort.
Then at the other end Sigurdarson beats the offside trap but has no options in the box from the right wing. Leicester, in turn, break and win another corner.
It's still quite end-to-end, but there hasn't been a real chance for a while. It can't stay at this pace, surely?
Ikeme spills a shot from Marshall, who had cut in from the left, but just about gathers before Nugent snaps up the rebound.
GOAL! Leicester 1-0 Wolves (Knockaert)
Fantastic driving kick from Schmeichel finds Knockaert in the Wolves half. He twists and turns his way into the box before shooting right-footed. Ikeme gets a hand on it but it squirms in. He's deserved a goal, he's been by far the standout player.
Ebanks-Blake forces a save from Schmeichel, but it's an easy hold down low for the Leicester stopper.
How do Wolves respond now? Henry gets stuck in and gives away a free-kick.
Henry didn't get booked for that but to me it's a potential red! A high scissors lunge is the best way to describe it, atrocious tackle.
Wolves pushing forward a little bit now. Batth put a header from a corner wide. I've just seen a replay of the Knockaert control, it really looked like a handball! Controversy there - it was very close to the official as well.
Leicester come back on top. Konchesky looks for Wood with a deep cross, but it's over the striker's head.
CHANCE! Sako, who is now operating from the right, finds Sigurdarson who plays in Ward down the left. His cross pings around in the box and Leicester manage to clear.
Fantastic stuff from Knockaert again, who gets into the box with a fine piece of trickery. Shouts for handball against O'Hara but the referee cannot give that. At the other end Henry strikes from long range and it goes harmlessly over the bar.
Michael Keane is almost caught out by Doumbia as Wolves start to press well. Can they get level before the end of the half? In truth, it wouldn't be deserved.
Wolves work some possession of their own, but are unable to find a way through the dogged City defence.
O'Hara is key to Wolves's good passing in the last few minutes, but again they end up going long to Ebanks-Blake. Another one is lapped up by Wes Morgan - that's not where Ebanks-Blake is strongest.
Not many chances of note in the last couple of minutes. Nugent had a snap-shot volley well blocked, but it's still Wolves doing most of the work with the ball. Once more Morgan easily deals with a long ball towards Ebanks-Blake.
CHANCE! Fantastic opportunity for Marshall. Leicester work some possession in midfield and Konchesky drives a ball towards Nugent, who gets the faintest of flicks into Marshall, but his shot goes over when well-placed.
HALF-TIME: Leicester 1-0 Wolves
A very entertaining first half ends with a deserved lead for Leicester. Ikeme has been the busier goalkeeper and the hosts have had chances to be further in front. However, at 1-0, Wolves are far from out of this.
There was controversy surrounding the goal: Knockaert's touch from Schmeichel's kick clearly came off his arm. Ikeme could also have done better, but Leicester created other good chances.
Just a couple of minutes away from the second half. I have to see I expect to see Leicester pull away with another goal or two, but you just never know.
The second half is underway.
Good start from Leicester, they win another corner which Knockaert will take... Wolves get it away after a few attempts.
Potential handball there as Marshall shoots against Berra. The defender had his arms down and in front of him, there's no intention there whatsoever, correct call.
Wolves come forward for the first time in the half, but Morgan gets the better of Ebanks-Blake once again, this time on the floor. It's been tough for the Wolves number nine.
GOAL! Leicester 1-1 Wolves (Sako)
Oh. My. Word. What a hit that is from Sako! It falls to him from just outside the box and he drills it very hard into the side of the net. Absolutely no chance for Schmeichel. That's the danger at 1-1, a flash of genius and Wolves are somehow back in it!
CHANCE! What a chance from Wood! Nugent cuts it across and, unmarked, Wood somehow puts it wide from a central position. Really poor.
The goal has livened up the fans. The Wolves support are in good voice now. It'll be a good test of Leicester's promotion chances this one now.
Sako gets another chance, this time on his favoured left. It was from a difficult angle and it goes high and wide.
Wolves are really pressing for the win now. They've been much better since the first five minutes of this half. More solid at the back, too.
Konchesky latches on to a Sigurdarson error to fizz across a low ball sees no teammate attacking it. It was a wicket delivery and deserved someone to gamble on getting the touch.
Sigurdarson gets the better of Keane but a heavy touch allows Morgan in to clear for a corner. Nothing comes of it and it's very evenly poised this one.
Wolves press again and Leicester are being pushed on to the back foot. No real chances being created as yet but you have to feel it won't be long if this pressure is sustained. Sako again shoots but it's blocked for a corner.
Getting a little bit more open now as both sides make inroads into the attacking third. We're still waiting for that big chance though that will see one of these sides get ahead.
LEICESTER SUB: Marshall comes off for Lloyd Dyer.
A crucial 20 minutes possibly in both side's seasons. Leicester could establish themselves as the team to beat at the top with five straight wins, while Wolves would take a big step away from the bottom three that is currently looming.
GOAL! Leicester 2-1 Wolves (Nugent)
Henry is forced back by a lack of support, and the eventual cross from O'Hara is cleared. It comes to Nugent, who drives forward with Dyer keeping the defence company. From just outside the box the striker curls into the bottom corner, super finish.
YELLOW-CARD: Foley goes into the book for kicking the ball away after giving away a foul. Fair, that.
LEICESTER SUB: The excellent Knockaert comes off for Jamie Vardy.
WOLVES SUB: Slawomir Peszko comes on for Sigurdarson.
Sako is carrying Wolves going forward at the moment, but he cannot work an opening there.
Schmeichel's passing has been nothing short of sensational tonight. Just like his old man, he's finding a teammate with every throw and in particular kick. Still Wolves on top of possession here, as David Edwards comes on for Henry.
WOLVES SUB: Doumbia makes way now for David Davis. He's a good player, the youngster.
Nervy moment there for Konchesky as Peszko's touch almost comes to Edwards, but it goes for a corner which is eventually cleared.
Another tremendous throw from Schmeichel to Konchesky almost sets up a chance as Dyer crosses. Wolves hold firm and now Leicester have a spell of possession.
Everything coming forward for Wolves is still coming through Sako. He's moved back to the left now to try his luck.
CHANCE! Unbelievable chance for Wolves! Davis clips a ball to the far post, who for the first time gets ahead of Morgan, but it clips the defender and goes wide. He really should have buried that!
It's still Wolves attacking. Ebanks-Blake almost finds his way through but it falls to Sako who tries to bend it in. Schmeichel parries it over the bar.
Three minutes of added time.
CHANCE! Ebanks-Blake comes even closer! The cross comes in and he controls superbly on his right before clipping the outside of the post with his left! How are Wolves not level?
LEICESTER SUB: Martyn Waghorn comes on for potential match-winner Nugent.
FULL-TIME: Leicester 2-1 Wolves
Well, in the end it's harsh on Wolves, but Leicester hang on after Nugent's superb winner put them back in front after Sako's even better equaliser.
That's all from me tonight. Thanks for joining us for the action tonight.