The 35-year-old was offered a new deal after helping Wolves to survive in the Barclays Premier League for a third successive season and has finally put pen to paper.
Craddock knows he will face competition for his spot with Reading centre-back Matt Mills among Wolves manager Mick McCarthy's potential targets but is prepared to battle.
Not finished yet: Craddock (right) is delighted to have extended his stay at Molineux
He said: 'It's good news that the contract is all done and dusted and I can concentrate on the year ahead.
This time last year I was thinking it would be my last season so to get another 12 months is a big achievement.'
Craddock added: 'There may be competition but it's never a problem for me when a new centre-half comes in.
'It's all about what benefits the club. If I have to scrap it out with another centre-half, so be it.
Stiff competition? Mills is one of the players being lined up to join Wolves
'I just need to give myself the best opportunity to be involved at the start of the season.'
Craddock was Wolves' player of the year for the 2009-2010 campaign but injury problems meant he missed most of last season before returning for the finale of the fight to stay up.?Mills to request a move away from Reading, with Wolves set to pay ?3.8m for defenderWolves look to United defender Evans after failing to land Johnson and MillsWe won't always be relegation strugglers, vows Wolves owner Steve Morgan All the latest Wolves news, features and opinion
?
Source: Daily Mail
Source: Daily Mail