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Chairman Jeff Shi said Wolves were left with “no choice but to act” after parting company with head coach Bruno Lage.

The 46-year-old guided Wolves to a 10th-placed finish last season after succeeding Nuno Espirito Santo in June 2021.

But the Midlands club have won only once this term and Saturday’s 2-0 defeat at West Ham dropped them into the bottom three of the Premier League.

Shi told the club website: “Bruno is an excellent coach, a hard working and dedicated manager, and a warm, wise and honest man.

“He and his staff have been a pleasure to work with throughout their time at Wolves, so it is with much sadness that we have had to make what has been a difficult decision.

“I honestly have no doubts about Bruno’s ability, and I’m sure he will succeed elsewhere, however the team’s form and performances over the last few months mean that we have no choice but to act.

“On behalf of everyone at Wolves, I would like to place on record our gratitude to Bruno and his coaching team for all their efforts during their time with the club, and wish them the very best for the future.”

Lage previously managed Benfica in his native Portugal before joining Wolves, winning the Primeira Liga in his first season in charge.

He also worked as Carlos Carvalhal’s assistant at Swansea during the Welsh club’s time in the Premier League.

Wolves spent more than £100million over the summer, with Sasa Kalajdzic, Matheus Nunes, Goncalo Guedes and Nathan Collins all arriving for fees after finishing last season poorly.

West Ham United v Wolverhampton Wanderers – Premier League – London Stadium
New recruit Diego Costa made his Wolves debut in Saturday’s defeat at West Ham (Zac Goodwin/PA)

Former Chelsea striker Diego Costa and Boubacar Traore joined as a free agent and on loan respectively.

Wolves have won only one of their last 15 Premier League games and are the lowest scorers in the division this term, with just three goals.

Kalajdzic suffered a long-term injury on his debut, while fellow forwards Hwang Hee-chan and Raul Jimenez have also been sidelined.

Coaches Steve Davis and James Collins will prepare the team for the trip to Chelsea on October 8 as Wolves seek to find Lage’s successor.