Price, who has emerged through the Academy after first arriving at Wolves as a seven-year-old, has been a much valued member of the first team squad in recent years since making his initial breakthrough in the League One title-winning 2013/14 campaign.
The 24-year-old Salopian holding midfielder has now made 111 appearances for Wolves in all competitions, and scored two goals.
Price did go out on loan to Yeovil and Leyton Orient during the first half of the 2014/15 season, but has since remained at Molineux and continued to prove a calm and positive influence both on and off the pitch.
His current deal was due to run out at the end of the season but Wolves have now moved to secure his future.