The teenage striker has a €125m release clause, but in the current climate Porto know they will not get that.
But the Coronavirus crisis has had an effect on the transfer market and Porto were willing to listen to offers of €40m.
The income will allow Porto to comply with UEFA’s Financial Fair Play rules and reinforce their squad.
Silva played 22 games for Porto last season, scoring three goals. His enormous potential has won him comparisons to Cristiano Ronaldo.
Fabio Silva’s club-record transfer has now been made official by Wolves. He has signed a five-year contract.
We are delighted to announce the signing of Fabio Silva for a club record fee!
— Wolves (@Wolves) September 5, 2020