The England legend’s side have been hit by injuries and Butcher was pleased to beat off competition from south of the border to provide the home Wolves were seeking for their 20-year-old Smethwick-born midfielder.
Butcher said: “David’s a central midfielder, who can play at right-back as well. He’s a tough-tackling player, who keeps the ball well and I am sure he’ll be a great addition to our squad.
“Mick McCarthy rates him very highly and David has been on the fringes of the Wolves first-team. He came up on Tuesday night and we have managed to get the deal concluded in time.
“The move will hopefully work out well for him. He knows one or two lads up here. We actually tried to sign David earlier in the season.
“I know that there were League One and League Two clubs in for him, so we’re delighted that he’s chosen to come to Caley Thistle.”