Hayward has agreed to sell up all shares for £10 in total on the condition Morgan invests £30m in Wolves.

Manager Mick McCarthy has been assured his job is safe while Jez Moxey will stay on as chief executive.

The club statement read: "It is intended that the new capital, over a period of time, will be used to help re-establish Wolves as a Premiership club.

“Although this is a significant amount of money there will not be an "open cheque book" approach to signing players; instead the club will build on the current strategy of steadily and progressively developing a team of young, hungry and talented players.”

Morgan made his fortune as the founder of house builder Redrow plc before selling a majority shareholding in 2000. He is chairman of a number of privately-owned companies including, Harrow Estates plc, one of the UK’s contaminated land specialists.

He came close to buying Liverpool in 2004 and is thought to still hold shares in the Anfield club.

Hayward bought Wolves for £2m in 1990 and has invested £50m of his personal wealth in the club.

He has been searching for a successor since September 2003.

Hayward will remain as life president and his grandson Rupert Hayward will join the board alongside Morgan, who will be chairman, Moxey and three local businessmen – John Bowater, John Gough and Kevin Threlfall.