The midfield player was loaned to Molineux last summer, and the team has now activated the option to purchase him. The transfer is scheduled to be completed on July 1.
According to Sport, City has a buyback option and a 50% sell-on provision in the agreement.
Doyle, who helped England win the 2023 European Under-21s Championship last summer, has committed to a four-year contract with Wolves.
The 22-year-old made one goal in the FA Cup draw against Brentford in January throughout his thirty appearances for Gary O’Neil’s team.
“We’ve never seen Tommy as a player on loan, and he hasn’t acted like one,” stated sporting director Matt Hobbs.