The Bosnian front-man's 26 league goals in 2008/09 - alongside strike-partner Grafite's 28 - helped fire the Wolves to their first ever German league crown under Felix Magath.
And his devastating form in front of goal had alerted a string of Premier League clubs, including Tottenham Hotspur, Chelsea, Liverpool, Manchester City, Manchester United and Arsenal, before AC Milan were reported to have signed a pre-agreement with the striker, giving the Italians first option on the in-form front-man.
After the 23-year-old held talks with Wolfsburg officials over the weekend, it was made clear that the German outfit had no intention to sell their prize asset, with Dzeko publicly declaring his disappointment with the club's stance.
But the striker now appears to have had a change of heart, pledging his loyalty to the Volkswagen Arena side for the 2009/10 campaign.
"I want to go for it again in the league championship and I'm really looking forward to the Champions League," he told the club's official website.
"I feel very comfortable in Wolfsburg and will be giving 100 percent for the club next season."
The news is now likely to prompt Milan, whose main transfer target this summer was Dzeko, to turn to Arsenal front-man Emmanuel Adebayor and Sevilla striker Luis Fabiano, who were named as back-up options by the club's vice-president Adriano Galliani.
NEWS:Milan begin countdown on Dzeko deal
NEWS:Dzeko set to stay at Wolfsburg
NEWS:Milan eye Adebayor if Dzeko bid fails
NEWS:Dzeko keen to complete Milan dealNEWS:Gallaini hopeful of Dzeko signing
NEWS:Wolfsburg reveal Dzeko back-up plan
NEWS:Wolfsburg to discuss Dzeko future
NEWS:Milan close in on Dzeko
NEWS:Man City keen on Dzeko deal
NEWS:Spurs join race for Arsenal target Dzeko
NEWS:Chelsea join hunt for Dzeko
VIDEO:Dzeko half-volley in Gols of the Week
