Coventry City have agreed terms with Wolves and Freddy Eastwood to sign the £1.5million-rated striker, subject to a successful medical.
The 24-year-old Wales international was available for transfer after struggling to make an impression during his first season at Molineux.
The former Southend United striker almost joined the Sky Blues on loan in March only for the deal to fall through, but manager Chris Colemam was determined to bring him to the Ricoh Arena.
Eastwood earned a move to Wolves after scoring 63 goals in 125 appearances during three seasons with the Shrimpers.
"As people will know, Freddy has been a long-term target for us and we're delighted to concluded everything," chairman Ray Ranson told the club's official website.
"He fits the bill in terms of being a quality player at the right age and will be the fourth signing we've made.
"We told our supporters that we'd be strengthening the squad and hopefully this is further evidence that we're doing just that."