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."
Source: PA
Source: PA