The Midlands club have had a poor start to their Premier League campaign and boss Bruno Lage has been looking to bring in attacking reinforcements.
Wolves zeroed in on Stuttgart hitman Kalajdzic, who is in the final year of his contract at the German club.
The Austrian has been consistently linked with a move to the Premier League throughout the ongoing window and Wolves stepped up efforts to open the door for him to England.
But Wolves saw Stuttgart knock back their initial bid for the striker, although they did not give up hopes of signing him.
Lage’s side remained in talks with the Bundesliga outfit over a move for Kalajdzic and have now reached an agreement on a fee for him.
Wolves are tipped to forking out a fee in the €18m range for Kalajdzic excluding bonus payments.
Kalajdzic has already reached an agreement with Wolves on personal terms and is set to undergo his medical on Tuesday ahead of the switch.
