Nuno is joined in extended his deal by coaches Rui Pedro Silva, Rui Barbosa, Antonio Dias, Joao Lapa and Julio Figueroa, while former Valencia and Newcastle coach Ian Cathro has also now joined the backroom staff side on a three-year deal.
"I am very thankful because of the trust and the confidence that the club puts in us as a technical team," Nuno told Wolves.co.uk.
"My team really work as a team. First of all we are friends, we respect each other, we admire each other and we work for the same goal. That goal is to find every detail we can to help the team to perform well, compete well, and fortunately win.
"We knew that the project required time and now we have three years ahead of us of contract, and we are very, very thankful and delighted to be here."
Nuno arrived in the west midlands shortly after leaving Porto in 2017 and oversaw promotion to the Premier League at the first time of asking.
Since the end of last season, Wolves have secured the permanent signings of several loan players, including Willy Boly, Diogo Jota and Leo Bonatini, while goalkeeper Rui Patricio has signed from Sporting CP and striker Raul Jimenez has arrived on loan from Benfica.
"When you speak about increasing the quality, of course the squad is going to change," Nuno said.
"There are other things we have to look at: the quality of the player, the ambition of the player, and the will to come to Wolves and help this big club become even bigger, in the best competition that is the Premier League. It is going to be a challenge for everybody.
"The way we did it last year was absolutely amazing - I cannot thank the supporters enough. But at the same time I humbly ask, let's do it again. Together we are stronger."