Dean Saunders has agreed to become Wolves' fourth manager in less than a year after quitting Doncaster Rovers to take over at Molineux.
The former Welsh international is believed to have signed a one-year rolling contract to replace Stale Solbakken, who was sacked following Saturday's FA Cup defeat to Luton Town.
Saunders met with Wolves owner Steve Morgan on Sunday after being given permission by Doncaster chairman John Ryan and the 48-year-old will be officially unveiled on Monday after compensation was agreed by the two clubs.
Saunders will be joined in his task of reviving the Championship club's bid to make the play-offs by his Doncaster number two Brian Carey, while Mel Purchase has also been handed a position as coach.
Ryan feels he was powerless to prevent Saunders taking up the challenge at Wolves after revealing he received an approach late on Saturday evening.
"We have discussed compensation. It is a real sickener for us," he told the Daily Telegraph. "I am sure Dean will do a good job for them. We will now focus our attempts on finding his replacement, which will be difficult because a lot of our targets are currently in other jobs."
Morgan is understood to have used his Liverpool contacts in his decision to move for Saunders, but this is a decision he needs to work after his gamble on appointing Solbakken backfired.
The Norwegian endured a torrid time with fans daubing his car in paint while he also had several bust-ups with his own players.
Morgan was forced to act hours after the humiliation of losing in the FA Cup third round against non-league Luton, with Wolves winning just three of Solbakken's last 16 Championship games.
Wolves released a statement, which said Saunders was set to take the job on the proviso that terms could be agreed.
"Wolves can tonight confirm that terms have been agreed with both Dean Saunders and Doncaster Rovers for Saunders to become the club's new manager,'' said the statement. "The formalities of the move are yet to be completed and a fuller statement will be issued once they are finalised.''