Wolves have announced they are to proceed with the first step in the redevelopment of Molineux at the end of the current season with the £16million pound construction of a new two-tier stand.
Phase One of a possible three will start with the demolition of the Stan Cullis (North) Stand in May with a new two-tier stand to be built which will be completed in time for the 2012/2013 season.
Molineux's capacity will be raised by 2,700 to 31,700 with the funds for the project coming from the existing cash flow.
A new club megastore, interactive museum, cafe, family information centre and new hospitality facilities will also form part of the redevelopment while there will be a larger accessible lounge for disabled fans.
However, it means that during the redevelopment capacity will be reduced to approximately 23,995, which would mean tickets would be at a premium should Wolves survive in the Premier League.
The club have appointed Buckingham Group Contracting Ltd for the project, the company responsible for the London 2012 handball arena and Stadium MK in Milton Keynes as well as the American Express Community Stadium, the new home of Brighton and Hove Albion and which is due to open this summer.
Should Phase Two go ahead then the total cost will be approximately £40million with capacity rising to around 36,000 while there have not yet been any costings for a possible Phase Three.
Wolves chairman Steve Morgan told the club's official website, www.wolves.co.uk: "The aim is to drive the club forwards at all levels and to ensure we put our team in the best possible position to compete at the highest level.
"To do that we need the best possible facilities at Molineux.
"We know there is a balance to be struck. This decision is about a statement of our commitment, belief and ambition and about the planned success for Wolves over the medium to long term, but we will also continue our policy of investing in our talented, young squad because there is no point in having a great stadium if we don't have a great team to play in it.
"This is a brave and decisive leap forward but one which will open up an exciting and historic new chapter for the benefit of everyone connected to this wonderful football club and city."