The 18-year-old joined Wolves from Rochdale last January and this season has been a regular as part of James Collins’ under-23 side, making nine appearances and scoring once.
The move will provide more senior experience for the right-back, who played 36 times for the Dale at League One level previously and scored a memorable Carabao Cup goal at Manchester United.
Now, he returns to the third tier once again with Ipswich and could make his debut for his new side against Blackpool on Saturday.