O'Hara enjoyed a successful loan spell at Molineux during the second half of last season, scoring three goals in 13 games.
An agreement was already in place for O'Hara to make the ?5million move to Wolves should the player and manager Mick McCarthy want that to happen.
Molineux man: Jamie O'Hara (right) is on the brink of returning to Wolves
That is the case and the finer points of the contract - expected to be for four or five years - should be tied up imminently according to sources close to the club.
O'Hara was often used effectively just behind the main striker in a 4-5-1 formation as Wolves guaranteed Barclays Premier League football for a third successive season.
Hunted: Wolves are also keen on signing Paul Konchesky from Liverpool
McCarthy is also interested in signing Liverpool left-back Paul Konchesky who spent the second half of last season on loan to Nottingham Forest.
The Wolves boss is also looking for a new keeper as back-up for Wayne Hennessey after Marcus Hahnemann was released at the end of last season.
Wolves ready to test Birmingham's resolve with ?7m move for Roger JohnsonPompey and Wolves set to battle it out over Liverpool flop Konchesky Club-by-club guide to all the Barclays Premier League summer transfersAll the latest Wolves news, features and opinionAll the latest Tottenham news, features and opinion
Explore more:People: Paul Konchesky, Marcus Hahnemann, Wayne Hennessey, Mick McCarthy, Jamie O'Hara Places: Liverpool