The 21 year-old attacking midfielder makes the move from Celta Vigo, where he only made his first team debut last season.
Lopez told the Wolves website: “It's an amazing opportunity for my career to play in the Premier League, and I'm very happy. The club told me, and Vitor (Pereira, manager) told me that they thought that I was a good fit in the squad.
"When it’s a club like this, you have little to think about. It's true, it was very hard to leave my boyhood club, but I was very pleased to come here and play in, with LaLiga I think, the best league in the world.
“Last season I played at the Bernabeu twice, I played Barcelona away, Atletico Madrid away – they were the best atmospheres in Spain. Now, I want to do the same, but in England.”
Aspas my idol
On his whirlwind 12 months, Lopez smiled: "It was amazing. To be able to finish seventh in a competition like La Liga was amazing. My breakthrough year, I cannot explain with words, because it was everything I had dreamed of before, when I was playing in the academy and on the B team.
"It was playing with my mates, because we had a very young squad and a lot of us came from the academy, and I was playing with my friends, so I was happy, I was enjoying it, and I think that was the main thing that took us to seventh.
“The manager (Claudio Giraldez) trusted me a lot. Also, I learned a lot from Iago Aspas who was a bit like my mentor. We played in the same position, even though we are not the same type of player.
"He helped me a lot throughout my six months in the first-team, and when I was training with them before, even though I was not playing with them, he was such a good guy, he's my idol, and I'm so grateful for everything he showed me.”