Wolves have signed Jonny Otto for a joint club record fee of £18million.
The left-back has penned a contract until 2023, having spent the first half of the season on loan from Atletico Madrid.
He has played 22 times for Wolves this season, scoring once, with the club sitting seventh in the Premier League.
"I'm really happy to continue to be involved with the team. I am very happy here, the truth is that it was very easy to decide," Jonny told the club's official website. "They are treating me very well, there are great staff, great team-mates and great supporters. It is a big club and, really, I am very happy to be here.
"We've had conversations for a while but everything has been very fast.
"The clubs reached an agreement and asked me what I thought and, really, from the first moment I said yes to Wolves because the truth is that I am very happy to be here.
"I really like this league, I really like Wolverhampton and I'm really happy to be here."
The defender also made his Spain debut in September and has three caps for his country.
"It was a great step for my career," he added. "It was a very nice debut with the national team and the truth is that it was one of the most important moments of my career so far.
"In the end, when he called I was in the Wolves team and it was very important to help me take this step. I have continuity in a team that is having a great year and I think it helped me a lot."
Jonny began his career at Celta Vigo, making over 200 appearances, and joined Atletico Madrid last summer.
He never made an appearance for the Rojiblancos, however, immediately heading to Wolves on loan.
Jonny joins Adama Traore as the club's record buy, with Traore having moved from Middlesbrough for £18million last summer.
