The 22-year-old, who had been linked with a transfer to a number of Premier League clubs including West Ham and Middlesbrough, has ended speculation over his future just a day after midfielder Seyi Olofinjana was granted a transfer request.
Going nowhere: Michael Kightly says he is happy to sign a new deal at Wolves
"I'm really pleased that the deal has been completed," Kightly told the club's official website, www.wolves.co.uk.
"I hope this will stop all of this talk about me wanting to leave."
Kightly joined Wolves for a nominal fee from non-league Grays Athletic in January 2007 following a loan spell at Molineux.
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London gets ready for the Diamond Jubilee - in pictures
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EXCLUSIVE: I won't play with Joey Barton, says Adel Taarabt
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Diamond Jubilee: Boat by boat, here is where to watch the Queen's Thames flotilla - VIDEO
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Duchess of Cambridge is pretty in pink at her first Buckingham Palace garden party
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News pictures of the day
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Locked up and banned: The Tube drunk whose vile racist rant was caught on film (video)
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London 2012 Olympics: Raising the bar and the Games haven't even started yet. Price of toasting Team GB is £6 a pint! -
Timebomb ticking in Thames Estuary could put Boris Island plans in jeopardy -
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Regent’s Park rapist: Teenage jogger assaulted by stranger in terrifying 7am attack
Why I think doctors are right to strike 
Family pay tribute to the London man who gave his life to save a five-year-old girl from drowning 
Eton schoolboys fly Games flag on Everest 
Horror on the 5.53! Commuter dragged 200 feet after getting hand trapped on train 
Shrimpy's - review 
The O2
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Celebrate with MARTINI®
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Rock star
Happy anniversary
Victoria Coren
Summer party
Diamond Jubilee
Glamour Awards
Garden party
First review
Fair-weather goths
Dog save the Queen
