Doherty arrived last year from Bohemians.
Wolves boss Mick McCarthy, who likened Doherty to key defender Kevin Foley, said: "Matt has just signed a new contract and I'm delighted with him.
"He was as good as anybody on the pitch last night at right-back.
"He was great and his use of the ball was as good as anybody's. He reminds me a lot of Kevin Foley in the way he plays.
"He had another really solid and mature performance."