The former Reading and Chelsea midfielder is to leave Aston Villa this month as Gerard Houllier tries to cut the club's £70million wage bill, and Mark Hughes is the latest Barclays Premier League boss to make a move for Sidwell.
The Hammers looked favourites to snap up the 28-year-old but that switch appears to have stalled.
Home comforts: London-born Sidwell is set on a move back nearer to his family
Wolves agreed a £250,000 loan deal for Sidwell, who was in the stands to watch their win over Chelsea in midweek, but that move also seems to have hit the buffers.
But Fulham have come out on top, according to Wolves' club chief executive Jez Moxey, who today revealed Hughes's club were set to seal the deal.
He told the club website: 'Fulham have come in for him, and, ratherthan take over his contract which runs to the end of the season, theyhave offered him a long-term deal.
'We move on, we've always said how difficult it is to get players in, especially at this time of the year.
'We never believe a player is ours until he actually signs, so therewas no great surprise - although there was disappointment - herebecause we always knew there were other clubs interested.
'Even after a few days into the window's opening, it's already proving just as difficult as in previous years.
'However we continue to actively pursue at least two or three potential new signings.'
Wandsworth-born Sidwell has opted against staying in the Midlands to be near his family home in south-west London, according to the Mirror.
Sidwell is out of contract at Villa Park at the end of the season. He has made just 24 Premier League starts for the club since joining from Chelsea for £5m in 2008.
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