The Wolves forward, who scored in a 2-0 win over Aston Villa on Sunday (AEDT), put pen to paper on a new four-and-a-half-year deal.

Cunha has been linked with a move away from Molineux in recent weeks, with the likes of Arsenal and Nottingham Forest reportedly interested in signing him, but he has chosen to stay at the club.

Vitor Pereira said after that win, which saw them move two points clear of the relegation zone, that Cunha had decided to stay before the news was confirmed later in the day.

The Brazilian scored his 25th Premier League goal against Villa, becoming just the second player to reach this milestone for Wolves after Raul Jimenez (40).

He is their leading scorer in the top-flight this term, with 11 goals, while he has also registered four assists.

"Matheus has been on an amazing journey with us over the past two years, and it's been a privilege to see him grow into a big part of the Wolves family," Wolves chairman Jeff Shi said.

"Matheus has a good relationship with everyone at Compton Park, his personality is infectious to those around him, and we hope this new contract will provide a boost to the group.

"We can all see his quality on the pitch, but off it, he's developed into a leader of the group, and we're delighted that he's signed a new contract. It's always important to us that we reward our strongest and most impactful players, and Matheus deserves this new deal."