The club agreed to pay a club record amount to sign a player.
Bruno Lage's side will pay an initial £38m plus £4.2m in add-ons for the Portuguese international.
Wolves are hoping to register the player by midday on Friday in order for him to play in Saturday's game at Spurs.
Two years ago, Wolves paid Porto £35m for forward Fabio Silva, who is currently on loan to Anderlecht.
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He joined from Estoril in January 2020 and has spent the last three and a half seasons at the Lisbon club.
He has seven goals for the Lions. He made his debut for Portugal a year ago and has eight caps and one goal.
David Moyes said last week that the player didn't want to go to West ham.
Wolves have already signed Nathan Collins and Goncalo Guedes this summer.
The transfer window will close at 11pm on September 1st.
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