The 27-year-old knows the relegated club's new manager Stale Solbakken from their time in Germany, and comes in to replace Michael Knightly who has moved to Stoke City
Wolves have signed winger Slawomir Peszko on a season-long loan from Koln, with a view to making the move permanent.
The Poland international has followed the relegated side’s new manager Stale Solbakken – who coached him last season in Germany, scoring twice in 43 Bundesliga appearances.
The 27-year-old comes in as a direct replacement for Michael Knightly, who completed a move to Stoke City on Wednesday.
Solbakken told the club’s official website: "Slawo is a player who can operate on both wings and had a very good first half to the season last year.
"To be honest, and I think he would admit this himself, the second half to the season wasn't as good and was maybe complicated by him trying to get into the Polish squad for the Euros.”
The winger failed to make the Poland squad for Euro 2012, but does have 24 games on the international stage under his belt.
Peszko spent nine seasons playing in Poland at Wisla Plock and Lech Poznan before making the switch to Koln two seasons ago.
And Solbakken was keen to stress the qualities the player would add to the Wolves squad, adding: "But I know the quality he can offer us, including great acceleration.
"He is also not afraid, so, while he may not be the biggest player in stature, he is fearless, which is one of his real strengths.