Struggling Championship side Rotherham have signed Burnley defender Daniel Lafferty on a loan deal for one month.
Blackpool's top scorer Steven Davies is set for the Bloomfield Road exit door after asking to speak to another club.
The 25-year-old has joined Town until the end of the season and provides a welcome boost to the club's defensive ranks after Bradley Orr was recalled by parent club Blackburn.
Manager Mick McCarthy knows Stearman well from his near six-year spell in charge at Molineux having signed him from Leicester in the summer of 2008.
Stearman has found first-team opportunities hard to come by for Wanderers this term, starting just eight league games.
However, he has made a total of 142 appearances during his four and half years at the Black Country club.
Meanwhile, Wolves have appealed against Roger Johnson's red card in Saturday's 2-1 defeat against Blackpool.
The centre-back was sent off in the closing stages following an altercation with Angel Martinez and faces a three-match suspension.