"I first got to know Nuno two years ago and at that time we hadn't taken over Wolves," Wolves director Jeff Shi said in a statement. "But when talking to him I was impressed by his football tactics.
"In a sense, we are very glad to find Nuno with a football philosophy that is similar to ours."
Santo, who previously managed Valencia and Rio Ave, was sacked by Porto last month after finishing the season without silverware.
The 43-year-old will be joined by Rui Pedro Silva, Rui Barbosa and Antonio Dias as a part of a revamped Wolves' backroom staff.
(Reporting by Hardik Vyas in Bengaluru; Editing by Hugh Lawson)
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