Wolverhampton Wanderers have named experienced Portuguese coach Vítor Pereira as their new head coach on an 18-month deal, following the dismissal of Gary O'Neil.

Wolves paid £825,000 in compensation to Saudi Pro League side Al-Shabab to secure Pereira's services.

The 56-year-old arrives with an impressive résumé, having won back-to-back Primeira Liga titles with FC Porto (2012, 2013) and the Greek Super League with Olympiakos in 2015.

He most recently managed Al-Shabab, leaving them in sixth place in the Saudi Pro League.

Pereira replaces O'Neil, who was relieved of his duties after Wolves' 2-1 defeat to Ipswich Town last Saturday.

The loss left Wolves languishing in 19th place in the Premier League, with just two wins in 16 matches this season.

Chairman Jeff Shi expressed confidence in Pereira's ability to turn the club's fortunes around, stating: "Vítor is a highly respected and experienced coach who has achieved success across different leagues and will bring a new approach for the test ahead.

This is a challenging moment for the club, and we have full confidence in his ability to guide us back on track."

Pereira took charge of training for the first time on Thursday and faces an immediate test in his debut match as Wolves travel to 17th-placed Leicester City on Sunday.

With just five points separating the two sides, the game represents a critical opportunity for Wolves to begin their climb out of the relegation zone.

Having managed in top leagues across Europe and the Middle East, Pereira is known for his tactical acumen and ability to implement structured systems.

Wolves fans will be hoping his leadership can rejuvenate the squad and secure their Premier League survival.