Ruddock turned 17 earlier this month.
Wolves academy manager for football, Jon Hunter-Barrett, said: “We’re delighted to give Max his first professional contract with us. He’s an individual who has shown good character since joining the club two years ago from Bradford. He’s shown us that he’s heading in the right direction in terms of implementing what we want to see in a defender.
“Seeing his improvement has really impressed us. Coming into a new football club isn’t easy and showing what you’re doing when the club are recruiting you is one thing, but then showing what the new club want is something else.
“He’s shown us that he can learn and I think that full-time football has really helped him. Moving forwards, we want him to continue to cement his learning, improve and let his body get used to full-time football and that transition.”