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The Lions have lost just once since the midfielder joined the club on loan and the former Scottish international played a key role in the side's shock 2-0 victory over Watford at the weekend.
Yet despite Wolves having the option of recalling Cameron with 24 hours notice, manager Dave Tuttle was delighted with the news.
"It's great news that Colin will be staying with us", Tuttle told the club's official site. "He has made a major contribution since he's been here.
"I'm grateful to Wolves for allowing him to stay, and his presence only increases my belief that we can avoid relegation."