Neves swaps the Champions League for the Championship
The fee is rumoured to be around the £16 million mark although the details remain undisclosed officially with the club only confirming that it is now their record fee, beating the reported £13 million fee paid to Benfica for Hélder Costa in January.
The youngster became the youngest ever captain in the Champions League in 2015 as he took the armband for Porto's fixture against Maccabi Tel Aviv at age 18.
Neves told the club's official website that he is "very excited to play at this club", admitting that he has "always wanted to play in England."
The midfielder already has links to Wolves boss Nuno Espirito Santo as he played under him whilst the pair were at Porto in 2015, with Neves saying that he now has "a good opportunity" to work under him once again.
Neves went on to say that Wolves, who finished 15th last season, "have a good team" and "can do good things this season."
Midfielder has experience to his name despite his youth
Neves is a product of Porto's youth system, having joined the club at the age of eight. He was loaned out to second tier side Padroense in the 2012/13 season and finally made his Primeira Liga debut for Porto in 2014 aged 17.
Since then he has gone on to make 93 appearances for the club, including 18 in the Champions League, and has scored four goals across all competitions.
Internationally, Neves has made appearances for Portugal from U16 to U23 level and has two senior caps to his name against Russia and Luxembourg in November 2015.
Wolves boss Nuno Espirito Santo also spoke to the club's official website as the deal was nearing its conclusion, describing Neves as "very good player who can bring new things to our squad" adding that becoming the Champions League's youngest ever captain "means a lot."
Nuno concluded by saying that Neves is "very pleased to come here" as the Championship represents "a good challenge for him."