Defender Silvio has left Atletico Madrid and signed for Wolves on a one-year contract, with the club holding the option for an additional year.
The Championship club confirmed they have landed the 28-year-old one day after Walter Zenga was announced as the new head coach at Molineux.
Wolves have had a busy off-season, with a takeover by Chinese conglomerate Fosun International now complete and Silvio, a full-back, is their newest addition.
"The versatile full back has put pen to paper on a one year contract - with a further year's option in the club's favour - having reached a settlement to have his contract cancelled with Champions League runners-up Atletico Madrid," read Wolves' statement.
Silvio signed for Atletico in May 2011, winning the Europa League in his first season, but joined Deportivo La Coruna on loan midway through his second campaign at the Vicente Calderon after injuries limited his effectiveness.
The stopper then spent three consecutive seasons on loan at Benfica, making only 13 league appearances in that spell.
After joining Wolves, Silvio - who won the last of his eight caps for Portugal in 2013 - revealed he had long wanted to play in English football and targeted immediate promotion to the Premier League.
He said: "I'm really happy to be here. It's always been a desire of mine to play in England and play in the Premier League.
"The Championship is a tough league but I'm positive that we will be doing all we can to gain promotion and achieve Premier League football.
"Wolves is an historic club with experience in the top division. The club isn't in its best moment but I think it can get back there.
"I don't believe Wolves is a step back in my career because the Championship is full of good clubs and I think we can be promoted."