Kenny Jackett is searching for a player who can give Wolves 'another 10 to 15 per cent in terms of quality'.
Neil Adams says Norwich remain in the market for further additions after signing Cameron Jerome and Carlos Cuellar.
The 21-year-old had over a year left to run on his existing deal but the club were keen to tie him to a longer-term agreement.
Alfei, who has spent most of the season on loan at Wrexham, said: "I'm absolutely delighted. It's good to know the club has faith in me and there is nowhere I would rather be than Swansea."