It had appeared at one stage as though the 20-year-old would be heading to Scotland to link up with Aberdeen, with Wolves boss Kenny Jackett admitting that a deal was close.
Ismail has, however, opted to remain in England and will be turning out at Meadow Lane until at least December.
The move sees him return to the League 1 stage, having previously graced that level with MK Dons.
The second-half of the 2013/14 campaign saw him shine in the fourth tier with Burton Albion, but Wolves are convinced that a step up in class will serve him well.
Jackett said in the Express and Star: “Zeli has chosen to go to Notts County and it’s a good move for him, stepping up from League 2 last season with a good Burton Albion team that got to the play-off final to League 1 and it will be interesting to see if he can prove himself.
“To make his mark in League 1 is a good mark and a good step up.
“It’s until Christmas and then we’ll assess it then."