The 18-year-old makes the temporary switch from Monaco, with whom he signed a new three year contract in June.
A left back, Vinagre will initially work between the first team and Under-23 groups as he settles in at Wolves in the build up to the new season.
He started his career with Sporting CP in Portugal, joining Monaco’s youth ranks in the summer of 2015.
Vinagre has been capped at junior level by Portugal all the way up to the Under-18s.
He was part of the Portuguese Under-17 squad which won the European Championships last summer, playing a part in the goal in the final against Spain which Portugal won on penalties after it finished 1-1.
“I am very happy to come to a big club like Wolves for this season,” says Vinagre.
“A new story starts for me here at a club with big aspirations in the Championship.
“I like English football and the Championship and this is the perfect chance for me to get some experience.
“I am 18 years old and this is a really positive move for me and a good challenge.
“Working with such a good Head Coach will be perfect for me and I am looking forward to working with him and doing my best for the team and the supporters.”