We determine the explicit form of the single-particle Wannier functions {w(
i)(r)} appearing in the parameters of quantum models. The method is illustr
ated on the example of the Hubbard chain, for which we derive the renormali
zed wave equation starting from a variational principle and by treating the
system ground state energy as a functional of {w(i)(r)} and their derivati
ves. In this manner, the optimized basis is obtained only after the electro
nic correlations have been included in the rigorous Lieb-Wu solution. The r
esults for the ground state energy and the size of the renormalized s-type
orbitals, both as a function of interatomic distance, are calculated explic
itly.