Midfielder Guedioura will be a familiar face to Wolves fans after he spent the second half of last season on loan at Molineux before signing a permanent three-year deal.
The 24-year-old moved to England from RSC Charleroi after taking in spells with several clubs having spent his youth career with RCF Paris.
In the first half of the season Guedioura made seven starts and seven appearances from the bench for Wolves after making his debut in the goalless draw against Liverpool in January.
He scored on the last day of the campaign in Wolves' victory over Sunderland at Molineux.
As with many of his international team-mates, Guedioura was born in France but choose to play Algeria, who he is eligible to represent as his father Nacer played for the country as a striker.