Sylvan Ebanks-Blake's penalty ensured the fates of Wolves and Coventry would be decided on the final day of the season.
Elliott Ward rose highest to put the Sky Blues ahead after 18 minutes in their Coca-Cola Championship clash at the Ricoh Arena but Ebanks-Blake netted his 25th goal of the season from the penalty spot.
It was a missed opportunity for Wolves, who could have climbed into the play-offs with a victory after Crystal Palace lost at Hull.
As for the Sky Blues, they will have to wait until next weekend to secure their status in the second tier.
They remain three points clear of the drop zone going into next Sunday's final game at Charlton.
Less than two minutes had passed when Ebanks-Blake fired narrowly past the post as Chris Coleman's side were almost caught cold.
City were slow to get going and had striker Leon Best to thank in the 14th minute when he blocked a volley from Gary Breen following Michael Kightly's corner.
Darron Gibson and Best had efforts blocked at either end before the home side grabbed the lead.
It was a goal any striker would have been proud of as Ward headed Michael Hughes' cross back across goal and into the bottom left corner.
Wolves, 3-0 winners over FA Cup finalists Cardiff in midweek, threatened when Matt Jarvis fired narrowly wide from 12 yards.
But it was City who were dominating the possession.
Gibson failed to test Coventry's on-loan goalkeeper Kasper Schmeichel with a 25-yard drive.
Ward showed his worth in his own penalty area as he demonstrated perfect positioning to cut out Kightly's cross.
Jarvis proved a constant menace for the Sky Blues defence down the flank but Andy Keogh failed to convert his pinpoint cross, the Irishman's header bouncing down and over the crossbar.
However, Wolves levelled the scores eight minutes after the break and again they had Ebanks-Blake to thank.
Scott Dann brought down Kightly inside the area and former Plymouth forward Ebanks-Blake struck his penalty straight down the middle for his 10th goal in the last 12 games.
The visitors grew in confidence and it took a smart save from Schmeichel to tip Keogh's powerful shot over the bar.
Jody Craddock and Kightly both had opportunities as Mick McCarthy's side cranked up the pressure but the Sky Blues defence continued to stand firm.
They could even have taken the lead courtesy of Michael Doyle in the 72nd minute but the midfielder skewed his shot over the bar.
Wayne Hennessey twice came to Wolves' rescue to deny City's Maltese forward Michael Mifsud.
Substitute Michael Gray almost stole it for Wolves before Schmeichel parried brilliantly at the death to deny Ebanks-Blake a dramatic late winner.
Teams:
Coventry Schmeichel, Osbourne, Ward, Dann, Fox, Michael Hughes (Hines 90), Stephen Hughes, Doyle, Mifsud, Best,Tabb.
Subs Not Used: Marshall, Hall, Simpson, Gray.
Booked: Dann, Doyle, Stephen Hughes.
Goals: Ward 18.
Wolverhampton Hennessey, Foley, Breen, Craddock, Elokobi, Kightly (Gray 78), Olofinjana, Gibson (Elliott 88), Jarvis (Stephen Ward 89), Keogh, Ebanks-Blake.
Subs Not Used: Stack, Collins.
Booked: Gibson, Olofinjana.
Goals: Ebanks-Blake 53 pen.
Att: 27,992
Ref: Paul Armstrong (Berkshire).