The 21-year-old is expected to sign a long-term contract and arrives from Estoril, where he has enjoyed an impressive breakthrough year.
The club are sixth in the Portuguese top flight and Chiquinho has scored three and assisted three in his 15 appearances – which consists of only nine starts.
Chiquinho arrives at Molineux for an initial fee of £3million, but the deal includes an extra £1.25million in appearances-based add-ons.
Now, the Express & Star understands he is due to take his Wolves medical tomorrow (Monday) ahead of his move.
The young forward, who turns 22 on February 5, could form part of Bruno Lage's first team, however with Wolves currently well stocked in attacking areas it is understood he could leave on loan before the end of the month.
Chiquinho came through the ranks at Sporting before joining Estoril in 2019 – where he made his senior debut at the start of this season.
He also made his Portugal under-21 debut against Cyprus in November.
The winger becomes Wolves' second January signing after the £500,000 capture of Hayao Kawabe from Grasshoppers. The midfielder is still expected to return to the Swiss club on-loan later this month.
Meanwhile, young defender Luke Matheson has returned from his loan at Scottish Championship club Hamilton Academical and immediately gone out on-loan to Scunthorpe.
He has been reunited with his former Rochdale manager Keith Hill and played 90 minutes in their League Two loss to Exeter at the weekend.
Christian Marques has also been recalled from his loan spell at Portuguese side Belenenses after making only two appearances. He is likely to go out on-loan again.
Right-back Jack Scott is expected to complete a loan move to St Patrick's Athletic in Ireland, while under-23s defender Lewis Richards has joined League Two side Harrogate Town on-loan.