The signing of the 20-year-old – courted by the likes of Chelsea and Liverpool over the last year – represents a stunning coup for the Championship side and is one of the most surprising transfers in recent memory.
Porto had quoted a transfer fee of £40m for the 20-year-old a year ago but are thought to have accepted a cut-price figure of around £15m from the three-time English champions as they look to balance their books ahead of the new Primeira Liga season.
Neves made 18 appearances for Porto in all competitions last season under Nuno Espirito Santo, who has since been installed as manager of the Midlands outfit, and will earn a reported £40,000-a-week wage at Molineux.
“I’m very excited to play at this club,” Neves, who had been with Porto since the age of eight, told the Wolves website. “It is a very big club and I hope to help the team to win their goals.
“I have always wanted to play in England and we have a good team. I think we can do good things this season. It is also a good opportunity for me to work again with a trainer I worked with last year. I am very excited to start and to play in front of the fans – I love that.”
Neves – Wolves’ fifth signing of the summer so far – joins a growing Portuguese contingent at Molineux which also includes £13m-rated winger Helder Costa, midfielder Ivan Cavaleiro and defender Roderick Miranda.
A season-long loan deal for Neves’s Porto teammate Willy Boly – also on wages of £40,000 a week – is also thought to have been agreed but has yet to be confirmed by the club.
Both announcements were delayed following the tragic news that long-term Wolves keeper Carl Ikeme has been diagnosed with leukaemia.