The 20-year-old joined Wolves' growing Portuguese contingent after the clubs agreed a loan deal with an option to buy.
It is thought Wolves must pay a fee of around £18million should they wish to make the move permanent next summer.
The signing of the attacking central midfielder - also known as Vitor Ferreira - follows the arrival of Fabio Silva from the Portuguese giants last week in a £35m club record move, as well as defender Fernando Marcal from Olympique Lyonnais.
He's is a client of Jorge Mendes' Gestifute agency, which has close ties with Wolves owners Fosun.
The move has been hailed by Jeff Shi, who described the Portugal under-21 player as 'an integral component' of their transfer window plans.
The Wolves chairman said: “Vitinha is a crucial signing and an integral component in our recruitment plan for this summer.
“He is an exciting and special young talent, with an abundance of technique and creativity, who can provide a fresh option this season.
“Vitinha's signing demonstrates our ambition and strategy to further evolve our first team and continue to progress on the pitch.”
Vitinha has played five times for Portugal under-21s and has also represented them at under-17, 18 and 19 levels.
His arrival comes with the ringing endorsement of former Porto defender Luis Mata, who expressed surprise that he was allowed to leave Porto in the current window.
Mata, who played with Ferreira when the youngster was working his way through the ranks with Porto B, said he had expected the player to stay in Portugal and make his mark in the Porto senior team.
“Of course I am surprised. I thought Vitinha would remain in the FC Porto team," Mata said in an interview with Portuguese outlet Desporto ao Minuto.
“He was promoted [to the first team] in the middle of last season and showed a lot of quality, despite not having played so many games.
“It is a surprise that he is leaving for Wolverhampton in this transfer window.
“I hoped he would stay, at least, this season and assert himself at Porto."
However, Mata said he fully expects Vitinha to seize his opportunity to 'do beautiful things"' under the guidance of Nuno Espirito Santo.
“Although it is a surprise, Vitinha really has a lot of quality and enormous potential," he added.
“Step by step, and by gaining confidence in a different country and in a very demanding league, I believe he will be very successful at Wolves.
“He will do beautiful things at Wolves.“