Midfielder Matheus Nunes has been acquired by Manchester City for £53 million.
A 10% sell-on clause from any future profit City makes on the 25-year-old is included in the agreement for Wolves.
The international player from Portugal, who has 11 national team appearances, has agreed to a five-year deal with City.
I’m really excited to be joining Manchester City, the European champions and a team I’ve long loved, said Nunes.
Wolves turned down a prior offer from City for Nunes, holding out for a sum more in line with their original demand of more than £60 million.
Nunes has lately missed Molineux training after making it known that he wants to play for Pep Guardiola’s team.
Nunes continued, “I just couldn’t pass up the chance to work under Pep Guardiola, one of the greatest managers ever, and with some of the finest players in the world.
“I gained a lot of knowledge during my time at Wolves, and I’m eager to keep growing in the Premier League, which brings out the best in me. I’m very eager to get started, get to know the supporters, and hopefully contribute to City’s continued success.
Nunes was acquired by Wolves last summer on a five-year deal from Sporting Lisbon for a club-record £38 million.
He played a significant role in helping Wolves avoid relegation and end the season in 13th place during the second half of the previous campaign.