Winger Daniel Podence has signed a new contract with Wolves to commit his future to the club.

The attacker has also signed for Olympiacos on a season-long loan deal for regular game time.

The attacker, who played 37 games last season, has fallen out of favor under Gary O'Neil this season.

Wolves sporting director Matt Hobbs said on the club website: “It's no secret that Daniel was keen to look at new options this summer, but nothing came which suited us or Daniel.

“This is an opportunity for him to go back where he was and play European football, and he was great in understanding that for us to allow it, he had to sign a contract.

“There's still a possibility Daniel comes back and plays for Wolves again, but it was the right time to let him go and play this season.

“He can either come back after the season or we'll be negotiating next summer with a player with a longer contract.

“He was respectful and didn't push back - he was happy to protect the club.

“We'll stay in touch this season, and I want him to do well, to either come back and play for us in good form or maximise his value."