The 19-year-old, who has agreed a two-and-a-half-year deal with the option of a further 12 months, is a product of City’s Academy and has represented England up to under-19 level.
The versatile defender has spent the first-half of the season on loan at Almere City in the second tier of the Dutch football pyramid.
Francis made eight appearances for Almere City across the defence and midfield, and scored his only goal against Scheveningen in October.
Wolves Academy’s head of player development, Scott Sellars, worked with Francis from a young age at Manchester City and knows the quality he’ll add to the group.
He said: “We looked at what our requirements were moving forward, what we already had, and the opportunity came up where Ed was looking to move on.
“I spoke to some staff there (at Man City) and Ed was always talented from a young age. He can play centre-back, left-back or centre midfield so is very versatile.
“When that quality of player becomes available we have to discuss it to see if it’s a good bit of business for ourselves. We felt moving forward he could really add to the group and at 19 he has a lot of potential.”
While Francis ticked all the boxes for the club, the youngster was attracted to Wolves’ playing style, which is integrated into the club’s philosophy, from first-team, through to the Academy.
Sellars said: “We spoke to him and he saw how we play, and how the first-team play, and where the club is going, so I think he saw it as a good stepping stone for his career.
“We know what he’s about and it was our job to sell what we’re doing to make the move good for him. He’s got experience in Holland and international football, so it’s a good move for the club.”
Following his arrival, Francis will link up with Rob Edwards’ under-23s side and could make his debut against Hull City in the Premier League Cup on Monday.