Report shows that the two sides have agreed on a two-and-a-half-year deal, with an option for an extra year after, GOAL understands.
Sarabia had numerous offers on the table but chose Wolves due to his desire to play in the Premier League.
New manager Julen Lopetegui made the Spanish international a priority as he looks to bolster the squad. Sarabia has to complete his medical before the deal can be finalised.
Although the attacker has endured a disappointing campaign at PSG, failing to register a goal or assist in 14 league appearances.
But his 20 goal contributions on loan for Sporting CP last season suggest he can be an impactful player.
It must be noted that Wolves have been active in the transfer market so far, signing Mateus Cunha from Atletico Madrid, while also reportedly finalizing a deal for Brazilian youngster Joao Gomes.
Nice midfielder Mario Lemina has also been brought in on a £9 million ($10.9m) deal.
Lopetegui has expressed his desire to improve the Wolves squad as they look to push further up the table:
Speaking “In front of us we have a hard task and we have to be ready. The transfer window is open, so we have to take advantage because we have few players in this position. We have to balance this situation.”
