The paper report that Ameobi was wanted by the two clubs, and the Welsh side have won the race for the Newcastle United attacker.
Ameobi is 23 and his contract was set to expire at the end of this coming season, but the Chronicle believe the player has signed a new deal, ahead of a season long loan switch.
Brother of former Newcastle United striker Shola, the prospect is yet to establish himself as a regular starter for the club, despite featuring in 24 games in the Premier League last season.
During these appearances he scored twice and provided two assists, and the possibility of first team football out on loan will allow him to discover his potential.
Will Wolves regret missing out?
That remains to be seen. Despite making his Newcastle debut in 2011, Ameobi is yet to show he is a top level talent, and could even find it tough going in the Championship.
Wolves are a more settled side than Cardiff, missing out on play-off football only on goal difference, and that could have made it harder for the winger to break into the team straight away.
Cardiff may be a more suitable destination for him, while for Wolves it is early on in the transfer window to take the pragmatic view to simply move onto the next target and for now, shrug it off.