But he has made only 17 Premier League starts, scoring four goals.

The new deal ties Silva to Wolves until the summer of 2026.

The club also have an option for a further year.

"We felt that a season playing regularly would be very good for him at this point in his career," said Wolves technical director Scott Sellars.

"We've had lots of discussions between myself and [manager] Bruno Lage and with Fabio as well, about what we feel is best for his development.

"He's only just turned 20 today, so he's still a very young boy and he needs a season of playing regular senior football in a competitive league so he can come back to Wolves stronger.

"We saw with the performances of Morgan [Gibbs-White] last year how much of a positive impact a loan can have on a young player, so we believe it's the right step in his development to follow the same path."

Sellars added: "It was really important for us to sign Fabio to an extended contract before he went out on loan.

"As we're letting him go from the club for a year, we thought it would be best for everyone involved to secure his future to Wolves for a little longer.

"Fabio understands what we're trying to do, and this new contract and loan shows that we're working together to help him develop to be the best player he possibly can be."