McNamara led the women’s first-team as head coach since 2018, turning full-time last summer, and has now agreed to continue his role at the club.
“Everybody knows Wolves is a huge part of my life and has been for a long time now,” said McNamara.
“Now, after a difficult end to the season, and a tough summer, it's brilliant to finally commit to the season ahead and focus on trying to do what we've longed to do over the last few years and get promoted.
“I’ve never wanted to leave Wolves. From where we took it to where it is now is night and day, and I'm really proud of that journey and of the people that have been a part of it. Now we look to that next phase, and we've got a great platform to build on now and hopefully excel into what should be a really exciting year or two for the football club."
The good news follows the announcement that the Women's Super League will be expanded from 12 to 14 teams.
In order to reach 14 teams for the 2026/27 campaign, the top two teams in the second tier - the Women's Super League 2 - will be automatically promoted to the WSL.
The final 14th spot will be decided by a relegation play-off at the end of the season between the 12th-placed team in the WSL and the third-placed team in the Women's Super League 2.
These changes could create an additional promotion place on offer for the third tier next season.
"The core group made it really difficult for you to ever think about turning your back on it. I've always wanted to win this league and see Wolves in the WSL2, and to do it with this group would mean everything to me.
“With more opportunities potentially next year, I see this as a real key 12 months, and if we can keep those key players and add a couple over the summer, I think we've got a real chance to achieve a dream and build on everything that people have worked hard to put in place before us.”
In October Tammi George, Katie Johnson and Anna Morphet made history by becoming the first women's players to earn contracts with the Old Gold, and they helped form the core of a group which lost just one league game all last season.