Reports over the weekend revealed that the Premier League outfit were on the brink of adding yet another Portuguese to their ranks.
Wolves have been impressed with Chiquinho's progression over the past six months, the 21-year-old contributing four goals and six assists from 18 outings in Primeira Liga and the Taca de Portugal.
While a fee has not been disclosed, it was claimed on Saturday that Wolves have committed to paying €3.5m (£2.92m) with a further €1.5m (£1.25m) coming in add-ons.
Speaking after penning a four-and-a-half-year deal, Chiquinho told the club's official website: "I'm very excited, but I feel a lot of pressure because it's a big team, it's a big club, but it is more important that I come here and do my best.
"It's a big stadium and I feel a lot of fears because it's a big team, but I will do my best for the club and enjoy playing here."
Chiquinho is expected to feature in Bruno Lage's squad for the remainder of the season, rather than go out on loan. body check tags ::