The new deal will keep the 23-year-old at the club until the summer of 2013.
“This is a reward to Sylvan for his outstanding goalscoring for the last two years,” Wolves chief executive Jez Moxey told the club’s official website.
“To win the Golden Boot two years running is a superb achievement and we want him to feel absolutely magnificent going into the Premier League, where hopefully he can do exceptionally well.
“We realise it’s a big step-up but he’s really happy about being here and he sees his long-term future here too and we feel we have to act accordingly.
“He has been magnificent for us and he epitomises the determination and focus of the players here. He has also given great value for money and he’s been literally magnificent in every aspect.
“As soon as we said we were interested in him, he wanted to come and he loves it here – he loves the fans, he loves scoring goals, he loves playing at Molineux and his team-mates and the manager think he’s fantastic.”
