It was City who started the stronger and they might have led within a minute when Carlos Tevez struck from distance, but it just drifted high of the bar.
Wolves also worried the City defence in the early stages, however, after good work from David Davis barely three minutes into the match.
Sergio Aguero so nearly added City's first after seven minutes, but his low shot just drifted past the post.
Wolves began to enjoy a spell of possession as the half developed, however, with Michael Kightly looking dangerous on the wing.
Davis struck a powerful effort for the home side from the edge of the box after 12 minutes, but City goalkeeper Joe Hart clawed the ball to safety.
City were next to come close via Samir Nasri after 16 minutes, but he dragged his effort just wide after good work from Aguero, before the latter shot wide after 20 minutes.
City did eventually take the lead, however, after 27 minutes when Aguero converted from close range after a fine pass from Gael Clichy.
Chances remained few and far between in the latter stages of the half, with City entering the break ahead.
Wolves started the second period the better with Kightly leading the charge, but he found options limited with the ball at his feet, while Matthew Jarvis also proved dangerous on the opposite side.
Fletcher came close with a header after 57 minutes, but Hart pushed the ball to safety as the home side continued to attack.
City began to gain control of possession once more as the match approached the latter stages, and Tevez had an effort blocked by the Wolves defence after 71 minutes.
City wrapped up the win after 74 minutes, however, when Nasri finished from close range after a cutting pass from Aguero.
Wolves continued to play for pride in the latter stages of the match, but it was Aguero who passed up a golden chance to make it three after 83 minutes.
The result moves City just three points behind Manchester United in the race for the Premier League title.