The 21-year-old, who arrived last summer with winger Pedro Neto in a double-deal from Lazio and made four appearances in 2019/20, is heading back to his homeland.
He will now be hoping to get valuable game time under his belt at Famalicao, who finished sixth in the Primeira Liga last term.
Jordao has been allowed out as Wolves are set to bolster their midfield ranks with the signing of Porto's Vitor Ferreira.
A season-long deal, with a permanent option, for the 20-year-old – also known as Vitinha – is due to be wrapped up once he is back from Portugal Under-21 duty.
Their game against Belarus tonight was postponed because of a positive Covid-19 case among the Belarus group, but the match could be rescheduled for Thursday.
Neto and Ruben Vinagre are in the Portugual U21 squad as well.
It is understood Wolves would have to pay around £18million to make Ferreira's stay permanent.