0121 GMT June 15, 2021
Lage, who has been out of work since leaving Benfica last summer, was the club's number one choice following the surprise departure of Nuno Espirito Santo from Molineux at the end of the season, according to skysports.com.
The 45-year-old flew to London for talks with Wolves' chairman Jeff Shi and technical director Scott Sellars last month to begin negotiations over joining the club, before being granted a work permit.
The former Benfica boss replaced Rui Vitoria in January 2019 and won the Portuguese top flight in his first season, but the club relieved him of his duties last summer.
Nuno departed Molineux after four successful seasons with the Midlands club during which he guided them to promotion from the Championship in 2018. The Portuguese helped secure Europa League spots in his first two seasons in the top flight.
But a 13th-placed finish and poor form in 2020/21 saw Nuno leave the club by "mutual agreement" at the end of the campaign.
"Every managerial appointment is a risk but it's a similar path Wolves chose with Nuno; not too many people in this country knew too much about him and it was a risk that paid off. The Portuguese league is dominated by a cluster of teams year in, year out so the CVs of managers who come from those sides will undoubtedly look good so it's a shot into the dark but it's a retention of the Portuguese theme with which Wolves have enjoyed success. We'll wait and see.
"There's no doubt that the Wolves hierarchy will want to see an improvement on last season. There are lots of talented youngsters at the club but if Wolves want to go to the next step – and I believe that's the reason Nuno has left the club – he's not going to have a whole lot of time to nurture and develop these youngsters because he needs positive results.
"It's really important that Wolves get off to a good start next season. It's a results-driven business, especially at Premier League level. It's always going to be hard to crack a top-four spot but Wolves want European football; when they look at what West Ham achieved last season, the hierarchy will think that is what they should be competing with."