The 25-year old is just returning from a long injury lay-off and Wolves boss Mick McCarthy is hoping he can fast-track his return by gaining some first team match fitness at Vicarage Road until November 19.
"Michael is fit to play and has already started two of our Premier League games this season," McCarthy told the club's official website.
"But having spoken to him he feels he needs to play maybe five or six games on the bounce which is something he hasn't been able to do in the last two years.
"We had a discussion and agreed that he should try and go out on loan where there's a better chance of playing those games and helping him get towards the levels needed for the pace of the Premier League.
"I am sure this loan spell will be extremely good for him and also for Watford as well."