The 23-year-old was the top scorer in the Championship last season as Mick McCarthy's side won the division and earned promotion to the Premier League.
Wolves have been understandably keen to secure Ebanks-Blake's future and have been in summer-long discussions with the former Plymouth man.
The forward, who still had three years remaining on his previous deal, insists he was not planning on leaving the top-flight new boys and he is pleased to have signed a fresh agreement.
Ebanks-Blake told the Birmingham Mail: "I have sorted my contract - finally. I am delighted. I have another four years now and that means I can just concentrate on my football and enjoy it.
"There were a few complications, which does happen in this sort of negotiation, but there was never any doubt that my future was
"I had three years left on my current deal anyway so I wasn't going anywhere.
"It is just nice to finalise it and I am happy. I don't plan on going anywhere in the near future.
"I wanted to stay and the club have shown me the biggest compliment that I could get - that they want me."