Paris St Germain have pipped Wolves to the signing of Cameroon international midfielder Modeste M'Bami.
M'Bami played for Sedan last season
M'Bami had reportedly agreed to join Wolves on a four-year deal earlier in the week but has opted to leave Sedan to join PSG on a five-year contract instead.
PSG made a late move for the African after their projected deal for Sochaux's French international midfielder Benoit Pedretti fell through.
"I was meant to go to England and sign with Wolverhampton on Monday, but PSG president Francis Graille phoned me overnight to make his offer.
"I had a little bit of time to think. I weighed up the pros and cons and chose to come here. I needed to play in a big club for my career.
"As far as I am concerned I think that with the team's quality we can win the title.
"But whatever happens we will have to grab a place in Europe," added M'Bami.
M'Bami was a member of the Cameroon team that won the Olympic tournament in Sydney in 2000, the year he joined Sedan from Cameroonian outfit Dynamo Douala.
The move for M'Bami could open the door for Manchester United and Barcelona target Ronaldinho to leave the club.
Wolves are still hoping to secure Cameroon international goalkeeper Carlos Kameni, who was also involved in the Confederations Cup.
Kameni, 19, plays for Le Havre and would join Wolves on loan for their first season back in the top flight since 1984, with a view to a permanent deal.
Veterans Paul Ince and Dennis Irwin have also agreed to stay at Molineux for another 12 months.
Their decision to remain with Wolves follows manager Dave Jones' capture of Portuguese midfielder Silas, Oleg Luzhny - subject to a work permit - and Nigerian defender Isaac Okoronkwo.
Meanwhile, Wolves have released Marc Edworthy, who played 23 times for the club last season, after his one-year contract expired at the end of June.