Former England World Cup left-back Terry Cooper, who discovered van Damme playing for Belgium age group sides in 2004 as European scout for Southampton, believes the 6ft 4ins tall player will be a real asset.
He told the Express & Star: "Wolves are a big club but Mick McCarthy can't pay £10million for a left-back and, if he does well there, another club might come along and sign him for £10million to £15million.
"I was signing him on potential because he was only a young lad but he's 26 now, he's played a lot of games for Anderlecht and he's matured, so he should be a good asset.
"Everton tried to sign him as well and I always thought he was going to be a bit special. With his height, he can defend the back post and set plays.
"But he is also very mobile so can gallop up and down. He's alright in the tackle too.
"When you bring foreign players to England they've got to be able to get stuck in because it's a physical game here, but they like a tackle in Belgium too and he'll be fine."
"I saw him three or four times but he did really well at left-back in two of the games."