The 20-year-old made the move to Molineux during the January transfer window and has started only one Premier League game, at Portsmouth 11 days ago.
But Wolves boss Mick McCarthy has been sufficiently impressed to keep Bia for another campaign.
He previously signed Bia's Charleroi team-mate Adlene Guedioura on a three-year deal after he also moved to Wolves on a temporary basis in January.
McCarthy said: "I'm delighted that Geoffrey is staying for another year. He's an exciting young player whose short time with us has been interrupted by niggling injuries.
"He was impressive the other week against Portsmouth until he had to come off at half-time, and he has looked sharp when he's played for the reserves.
"I'm sure he's going to benefit from being involved in the pre-season with us."
Wolves have opted not to extend the loan spell of Ecuadorian international Segundo Castillo.
He made eight appearances during his season-long loan from Red Star Belgrade, but never featured after November.