The former Hearts boss, who lasted less than a year at Tynecastle, was expected to take up a role at Molineux last summer alongside his former colleague, but no move materialised despite Cathro being seen at the club’s training ground.
However, last season’s Championship winners have now named Cathro as first team coach, with the former Newcastle United assistant linking up with Nuno for a third time after the pair worked together at Rio Ave in Portugal and La Liga side Valencia.
Cathro met the Wolves first team squad at their Compton training complex on Wednesday morning on the first day of pre-season training.
“I am very excited about joining Wolves and looking forward to working with a coach and staff I know, trust and believe in,” Cathro told the club’s website.
“All of us share the same footballing philosophy and that is such an important factor for a successful coaching team.
“Wolves is a fantastic club with a rich history and lots of potential, and I can’t wait to get started.”
The duo originally met at an SFA coaching course in 2009, but it was 2012 before Cathro and Nuno worked together for the first time at Rio Ave, where they led the side to a sixth-place league finish, reached two cup finals and qualified for Europe for the first time in the club’s history.
Howver, Cathro’s foray into management lasted just eight months, and he exited Hearts having won just eight of his 30 games in charge, losing 15.