Bournemouth manager Eddie Howe has vowed to give his promotion heroes the chance to shine in the Premier League.
Wolves boss Kenny Jackett fears he will lose key winger Bakary Sako after his side missed out on a place in the play-offs.
The 34-year-old former Newcastle, Aston Villa and Fulham centre-half becomes new Seagulls boss Sami Hyypia's first signing.
Hyypia told the club website: "We wanted to bring another experienced defender, and Aaron fits the bill - having played at Premier League, Champions League and international level.
"I have played against Aaron a few times during my time at Liverpool and also for Finland, and I know his qualities and what he will give us.
"He has a very good footballing pedigree, is an intelligent player, and he has a great mentality and good approach to the game.
"He has that experience I wanted to bring into the squad, which alongside our other senior players, will help our younger players continue to develop and progress in the first-team squad.
"Overall, we still have some work to do in terms of recruitment, and we are all working hard to do that. This is a good start and Aaron is a great addition."