The move means construction of the Steve Bull (East Stand) will not begin at the end of this season as planned.
The club – which is owned by Redrow boss Steve Morgan – said it would be prioritising a £6m redevelopment of its training ground and academy centre.
But Wolves chiefs said they are committed towards the redevelopment of Molineux and have commissioned advanced enabling works for the Steve Bull stand, including the diversion of major services, which will start immediately.
Work is currently being carried out on the new £18m Stan Cullis stand by Buckingham Group which will be completed by the start of the 2012/13 season.
Jez Moxey, Chief Executive, Wolves, said: “The stadium redevelopment was always to be constructed in phases with each to be taken on its merits at the time.
“The board felt that if we didn’t proceed with the Academy redevelopment we would never be able to revisit it, whereas the stadium redevelopment was always planned to be a long term project.
“In view of the financial commitment to the Academy we have decided to postpone the Steve Bull Stand development for now, particularly as this is a once in a lifetime opportunity to redevelop the Club’s Training Ground and Academy.”