The Montenegro international, who has been training with Bruno Lage’s first-team in pre-season, will spend the campaign alongside fellow Wolves loanee Dion Sanderson at St Andrews.
Born in England and raised in Belgium, the 23-year-old has gained first-team experience in previous loans spells with Livingston, where he kept seven clean sheets during a year in the Scottish Premiership, as well as last season with Shrewsbury Town.
During an impressive campaign in League One, Sarkic earned nine shutouts in 26 appearances for the Shrews, where he recovered well after an injury setback early in the season.
Technical director, Scott Sellars, believes the step up to Championship football will provide Sarkic with the challenge he needs to further his development.
“If you look at Matija’s progression over the last few years, even before he was with us, he had a season in Scotland with Livingston, then he had a good season last year at Shrewsbury, and now he’s going to test himself in the Championship.
“With all our players, we’re always looking for them to progress and face new challenges, and the best way to do this is play higher up the leagues.
“It will be a step up from League One to the Championship, but it’s going to be a fantastic opportunity for him to play in a really competitive league – one of the top leagues in Europe.
“It’s also a great stepping stone for the Premier League and will give him all the elements he needs to progress his career.”
