Reid left the Dragons with a heavy heart but is in talks to return to the Racecourse Ground on loan to continue his development.
The 17-year-old, who will begin his Wolves career in their under-21s squad, is looking forward to coming up against some of the country's most promising young players.
He told the club's official website: "I was made up when I heard Wolves were interested in me.
"I love Wrexham and have loved my time there so there were mixed feelings but Wolves is such a big club and this was an opportunity I couldn't turn down.
"I've been playing mens football during pre-season and in the season so it will be different for me playing in the 21s here.
"I'm sure it won't be as rough and tough but there will be a lot of quality at this level particularly with Wolves in the top division of the under-21s league.
"It is going to be a fantastic standard to play at for me and will challenge me in the same way as getting into the Wrexham first team did.
"To play against top youngsters from clubs like Chelsea and Manchester United is going to be fantastic and I can't wait to get involved.
"I think the aim for anybody coming to a club is to eventually get into the first team. That may be some way off but it's what I'm looking for and I'm excited about getting started."