Coady's two goals for Everton came against Southampton in the league and Manchester United in the FA CupEverton have decided not to take up a £4.5m option to turn defender Conor Coady's season-long loan move from Wolves into a permanent switch.
The 30-year-old made 25 appearances for the Toffees and scored two goals.
The England international started for Everton when they beat Bournemouth 1-0 on the final day of the season to secure their top-flight status.
However, he only played six times under Everton boss Sean Dyche, who took over at Goodison Park at the end of January.
Everton also confirmed defender Ruben Vinagre will return to Sporting Lisbon following his loan spell at the club.
"We want to sincerely thank Conor and Ruben for their impeccable professionalism and valuable contributions both on and off the pitch during their time with the club," said Everton director of football Kevin Thelwell.
"We wish both players the best in their futures."
