The former Chelsea player is set for a January transfer after falling out of favour at Villa Park. He had looked set for a switch to West Ham, but that move now appears to have fallen through.
A statement on the Wolves website read: "Wolves CEO Jez Moxey has confirmed the club are in talks with midfielder Steve Sidwell about a possible move from Aston Villa. Wolves had previously agreed a fee with Villa before Sidwell appeared to be poised to join West Ham."
Sidwell was at Molineux on Wednesday night as Wolves beat Chelsea 1-0 to move out of the Barclays Premier League's bottom three, at the expense of his current club.
Boss Mick McCarthy revealed after the game he was keen bringing in the 28-year-old, saying he would sign him "in a heartbeat" if he was available.
And striker Kevin Doyle hopes the deal goes through.
"Steve would be an excellent signing if it happens," he told the club website.
"I played with him at Reading for a number of years when we had some great success and he's also played for top clubs like Chelsea and Villa.
"If he does sign I'm sure he'll be raring to go. I spoke to him Thursday morning and we'll just have to see what happens but it would be a big boost if it goes through."
Source: PA
Source: PA