With one year remaining on the current agreement, the online bookie has agreed to extend their association with the club until the end of the 2012/13 season.
Details of the deal have not been made public but the club did confirm it was a seven-figure contract.
Wolves chief executive Jez Moxey said: "This is a major off-the-pitch achievement for Wolves. The fact that Sportingbet.com - a global, very successful brand - has decided to extend their deal with a full season still to run on their contract, is a huge endorsement of our football club.
"It bucks the trend in football, where many clubs are either struggling to retain their sponsor or to secure one at all."