The club brought the axe down on the head coach after their latest defeat at Fulham - with Wolves now having failed to win any of their first ten Premier League games of the season.
They currently sit bottom of the table and eight points from safety.
Pereira was only awarded a new three-year contract in September and the Wolves hierarchy were keen to keep him, but the latest defeat and the manner of it has led chairman Jeff Shi to sack the head coach.
Here is look at some of the names being linked with the vacant position - and whether they may be suitable to help Wolves recover from their disastrous start to the season.
Soon after the Pereira news emerged came shock reports that the man he replaced was being considered as a potential replacement by the Wolves hierarchy.
The former Bournemouth coach was axed by Wolves in December last year, having lost eleven of his first 16 matches of the season.
But now he has been instilled as the bookmakers favourite to make a surprise return to Molineux.
Gary O'Neil celebrates as Wolves beat Fulham (Photo by Jack Thomas - WWFC/Wolves via Getty Images)
Gary O'Neil celebrates a win at Fulham during his spell at Wolves (Photo by Jack Thomas - WWFC/Wolves via Getty Images)
O'Neil led Wolves to a a 14th placed finish the previous season - and prior to that had a full season at Bournemouth where the club ended up finishing 15th in the table.
It would be a surprise to see Wolves turn to their former boss, less than 12 months after he was axed but with him being out of work and no compensation to be paid, it does make him a possible option.
Rob Edwards 4/1
The former Wolves defender Edwards has seen his stock rise in recent years, after starting his coaching career at Molineux and moving into non-league, excelling at Forest Green and then going on to win promotion to the Premier League with Luton Town.
They were relegated immediately and Edwards was axed following a poor start to the season - with the Hatters then suffering a second successive drop.
He returned to the dugout this summer with Middlesbrough and has had a dream start to life at the Riverside, winning seven of his first 13 games of the season.
At Championship level, Edwards is a highly rated manager but he does have that lack of experience when it comes to Premier League management - and Wolves would need to pay compensation if they wanted to land him.
Rui Borges 4/1
Another Portuguese coach Rui Borges has been touted as a potential contender. The Sporting Lisbon boss, who like Pereira has managed a number of clubs, became Sporting boss in December last year and led them to the Primeira Liga title.
According to some reports in Portugal, this one may be a non-starter with Borges keen to stay at Sporting and win back to back titles.
Brendan Rodgers 7/1
A high profile name who is now out of work, Rodgers' name has unsurprisingly been linked with the Molineux job.
The former Liverpool manager, who departed Celtic for a second time recently following a public spat with the club's owner, is said to be one of the options the Wolves board are assessing.
His last Premier League spell was relatively successful, as Leicester qualified for Europe on more than one occasion and won the FA Cup.
Celtic manager Brendan Rodgers
Brendan Rodgers (Steve Welsh/PA)
Rodgers' final season saw him depart in April and the Foxes went on to be relegated. Out of the early contenders, he has the most experience and Wolves would not have to fork out compensation, with Rodgers out of work.
Ole Gunnar Solskjaer 17/2
The former Manchester United striker has been linked with the job in the past - and having been sacked by Besiktas in August after failing to qualify for Europe.
Solskjaer has Premier League experience with Manchester United, where he led them to the Europa League final, and at points looked like he could bring success back to Old Trafford.
But he was axed after a poor run of form - and that would be his last job in English football.
Other contenders
Former Porto and AC Milan manager Sergio Canceicao is in at 9/1. He has enjoyed years of success in Portugal, having won three league titles and a number of other domestic trophies. He is currently managing Al-Ittihad, having only been appointed in October.
Former tough tackling Wolves midfielder Kevin Muscat has been given odds of 12/1 to make a Molineux return. The ex-Crystal Palace and Millwall midfielder was recently linked with the Rangers job - having had success in Australia and Japan. He is currently managing in China.
Michael Carrick is another out of work manager linked, with the former Man United midfielder in at 16/1. Carrick starting his coaching career with United, he went on to Middlesbrough and spent two and a half years at the club, guiding them to the play-offs.
However, after missing out on the top six twice in a row, he was axed at the end of last season.