The 21-year-old defender has arrived on loan for the coming Championship season.
Sanderson recently signed a new deal with Wolves, where he has spent the past 14 years, but wants to get regular first team football this season.
He was involved 27 times for the club's Under-23 setup and is now making the step up to first team football in the Championship.
He told BluesTV: "I am delighted and so excited. Once I heard the news, I couldn't wait to get it done. As soon as I came in today, I have just had a big smile on my face. It's unbelievable to be here.
"I think they have a great team [here] and it's a big Club. Hopefully, it's a chance for me to play, to impress the Head Coach and help the team out and fight their way up the table.
"I'm a quick centre-half that likes to play football, technically I think I am very good, but I am aggressive as well and don't like to give strikers any chances.
"Everyone wants to play football and be in the starting XI. There's always going to be competition but as long as it's healthy competition, then it's good competition in my eyes."
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