The 22-year-old completed his medical on Tuesday morning and put pen to paper on a five-year deal at Molineux.
Traore joins after an impressive season at the Riverside Stadium, where he was voted the club’s Player of the Year as Boro reached the Sky Bet Championship Play-Offs.
The winger, who progressed through the Barcelona youth system as a youngster, made a handful of appearances at the Nou Camp before departing in 2015.
His move to Aston Villa brought Premier League football and after one season at Villa Park, Boro acquired his services following their promotion to the top flight.
Traore spent two seasons at the Riverside Stadium and last term netted five times and laid on a further 10 for his team mates.
His efforts were reflected with a triple award win at Boro’s End of Season Awards, which has led to Traore’s return to the Premier League with Wolves.
Internationally, the winger has represented Spain at four different age groups, including the under-21s earlier this year.
Following the arrivals of Rui Patricio, Jonny Castro Otto, Joao Moutinho and Raul Jimenez, Traore becomes Nuno Espirito Santo’s fifth signing of the summer.
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