The 18-year-old who joined from Spanish club Arosa two years ago has been training with Bruno Lage’s first-team squad this summer. Highly-rated Bueno was included in Wolves’ Premier League squad against Crystal Palace in January.
Wolves technical director Scott Sellars: “Since Hugo joined at 16, his attitude and work ethic to improve has been fantastic. He’s changed position, adapting to that and English football, and he’s a really focused young man.
“He had some great performances in pre-season for the first-team and it’s a good time to give him a new contract.
“He’s played in the 23s since being a first year scholar, so his progression has been quick, which is down to him. He’s a kid who is always working hard, when everyone else has gone home, and it’s great to see him rewarded for doing that.
“He’s a talented player with a great attitude, very competitive, and we’re all delighted to see young players progress. He came from a grassroots club in Spain, nobody had noticed him but us. He came as an attacking midfield player, but we pushed him to wing-back and he’s really thrived.
“Ultimately, we’ll have a look at him. He’ll have to get over his injury and I’d like to think he’ll spend the first half of the year training with the first-team and playing under-23s, and in January we’ll assess the next best step for his development.”