Hammill, who like Jarvis can play on either flank, has signed from Barnsley for #500,000.
The club now have four wingers in the first team squad, but Mick McCarthy sees Hammill as an addition, rather than a replacement.
"That's the old one of adding up two and two and getting whatever number you want to get," he said.
"There's no chance.
"When I was speaking with Adam and his agent, I said 'I hope he knows that we've got two terrific wingers at the minute (Jarvis and Stephen Hunt), and neither of them are going anywhere - you're coming here to compete'.
"His opinion was that he wants to take one of their places.
"He wants to demote one of them to the bench, not see one of them be sold."
Hammill added that he wants to learn from the senior players' experience.
"I'm looking to take things from their game and add them to my own," he said.
"I've seen them play in the Premier League and the quality they have is for everyone to see.
"If I can pick little things up on the training pitch and on a Saturday and put them in my own armoury then I'll be delighted."
Hammill will go straight into the Wolves squad for their match against Liverpool, coincidentally the winger's first club.
"It's ironic that Liverpool are the first game," the boyhood Reds fan said.
"It's fantastic for me personally to be able to get back to the big stage and show a lot of people at Liverpool that I was a good player who deserved to play in the Premier League.
"There'd be nothing more satisfying than getting a win on Saturday."
Kenny Dalglish is still searching for his first victory after returning as Liverpool manager and heads to Wolves admitting he has no explanation for the club's woeful away record.
The Reds have, under three different managers, registered just two Barclays Premier League victories on the road in almost 13 months.
That record contributed to the difficulties Rafael Benitez had before his departure in June and was a major factor in Roy Hodgson leaving after just six months.
Dalglish could not halt the slide with an inauspicious first defeat at Blackpool nine days ago but goes to Molineux still trying to work out why his team have been so bad on the road.
"It's surprising. The reasons why have yet to be fathomed," he said.
"We've done bad enough (under him) - we lost at Blackpool!
"But it's up to us. It's up to the players to come together and try to turn it around as quickly as we can.
"It's very unlike Liverpool not to have a good away record. Normally it's excellent.
"There are some things we've got to put right and that's one of them."
Another issue to put right is avenging the defeat by Wolves at Anfield last month - one of the worst performances by Liverpool in a long time.
It was the result which signalled the beginning of the end of Hodgson's short spell in charge and hastened the return of Dalglish to a role he had not occupied for almost 20 years.
The same players who looked so lethargic in that Wolves defeat have responded positively to Dalglish's arrival in the dugout, even if that as not been reflected in results with a draw in Sunday's Merseyside derby ending a run two successive defeats.
Dalglish does not see revenge as the primary motivating factor for his players inn tomorrow's game against the club second-bottom of the table but only five points below the 13th-placed Reds.
"I suppose it could be but you'd need to ask them that - I can't speak for every one of them," he said.
"Different things drive different people but winning games is the greatest feeling in the world, that's the biggest drive.
"Wolves played very well against us at Anfield and if some people were disappointed with that result and that's what inspires them, then fine.
"But no matter what happened at Anfield we'd still want to go to Molineux and win the game - wherever you get the inspiration from is down to the individual."