"It's something we've talked about for a while and to have finally got it done is great," Foley has said.
"I was always 100% up for a new contract. The gaffer pulled me just before the end of the season and said he was going to offer me a new deal.
"I feel comfortable where I am and I'm loving life at the moment.
"My agent spoke to the club and thankfully things have been sorted out pretty quickly without any problems.
"I definitely see my long-term future at Wolves.
"We've got the nucleus of a good team here and hopefully we can go from strength to strength.
"We know it's going to be really tough, but everyone in the dressing room is 100% up for the challenge.
"Why wouldn't they be because that's where everyone wants to be.
"In my own case I want to improve and I feel like there's no end to improvement as a player.
"Everyone can improve, no matter who you are.
"After resting, now is the time to kick on and look forward to next season."