TEAMtalk reports Adams will join temporarily but Wanderers have the chance at the end of the campaign to sign him for £15 million. He has already travelled to the Black Country for a medical.
The 27-year-old, who has scored three goals in three Championship matches so far this season, has been the subject of long-standing interest from the recently relegated Leeds United.
Adams has scored 34 goals and contributed 15 assists in 149 appearances for Southampton. Before that, he netted 38 and assisted 13 in 123 games for Wolves’ local rivals, Birmingham.