HITC Sport understands Iceland Euro 2016 hero set for Wolves.
Bodvarsson was a regular in the Iceland side as they reached the quarter-finals of Euro 2016 in their first ever major tournament.
The Kaiserslautern forward scored one of Iceland's goals in the 2-1 win over Austria and started the famous 2-1 victory over England in the last 16.
Wolves scouts were impressed by Bodvarsson's showings at Euro 2016 and they have moved quickly to agree a deal for the forward.
A number of other clubs, including Queens Park Rangers, were interested in Bodvarsson but Wolves have managed to win the race for the 24-year-old.
Bodvarsson only joined Kaiserslautern from Viking last January, but it seems he will be on the move again to England.
Wolves are expected to be busy in the transfer market before the window closes at the end of the month following the recent takeover by Chinese conglomerate Fosun International.
New Wolves boss Walter Zenga is looking to build a side capable of challenging for promotion to the Premier League and he sees Bodvarsson as a key addition to his plans.