The 19-year-old has joined from the Spanish giants on a one-year loan, with no mention of any option to buy him come the end of the temporary stay.
Mayoral flew from Real's training camp in Montreal on Wednesday to get the deal over the line.
A chance to shine
Mayoral has been in fine form for Real Madrid Castilla this season, scoring 15 goals and adding six assists in 33 games.
He also appeared seven times in the UEFA Youth League, finding the net an impressive eight times on their way to the semi-finals.
This was also the season in which Mayoral made his first-team debut, managing to grab an assist in his six appearances for the current UEFA Champions League holders.
The centre-forward is also a regular with the Spanish youth sides, scoring a combined 13 goals in 19 games across three different age groups.
Mayoral becomes Dieter Hecking's seventh signing of the summer, following on from the likes of Yannick Gerhardt, Daniel Didavi, Josip Brekalo and Jeffrey Bruma.
Mayoral thanks the club and fans
Before everything was signed and sealed, the youngster took to the Real Madrid club website to give his thoughts ahead of his season on loan.
Mayoral began by explaining what has been an "incredible" 12 months: "I spent pre-season last year in Australia and this year has been full of success stories for me."
He added, "I'm eternally grateful to Real Madrid and to all of my teammates and coaches. It's been a tremendous year."
Mayoral credited Wolfsburg as "a big name in German football and in the Bundesliga". He concluded, "I'm very happy and excited about the new chapter which lies ahead."