The 27-year-old, who was rumoured to be leaving the Molineux during the summer, will be tied down to Wolves until 2014.
"I'm delighted to have signed the new contract,” Doyle told the club’s official website. "It's something we've talked about for a while and to be honest it's been agreed for a while between myself and the manager and it was just a case of everything getting it all sorted.
"I don't really think there was anything in the speculation this summer. I'd actually spoken to the gaffer on the very first day of pre-season when we talked about this contract and I was keen to get it done.
"I am very happy here and am just looking forward to carrying on with the season."
The frontman signed for Wolves from Reading in 2009.