Huddersfield have confirmed the signing of Jason Puncheon from Crystal Palace on loan until the end of the season.
Puncheon, 32, whose four Premier League appearances for Palace this season have come off the bench, is Huddersfield's second January signing following the arrival of defender Jaden Brown from Tottenham.
"It is clear that we want to add quality and options to our midfield areas in this January transfer window and I'm sure many of our supporters know about Jason from his years playing in the Premier League."
The midfielder, who has made almost 200 appearances in the top flight for Palace, Southampton, Blackpool and QPR, will stay at Huddersfield until June 30.
"As well as being a very good player, he is a great character," Wagner said.
"He has been the captain of Crystal Palace and is a real leader in the dressing room, which is something we wanted to add too.
"He's now totally fit after the knee injury that he suffered last season and he's been very keen to come here and show that he is still capable of performing at the top level, which is great news for us.
"I'm really excited about working with him to help him understand our way of play."
Huddersfield had been linked with Dominic Solanke before his permanent move from Liverpool to Bournemouth was confirmed earlier on Friday.
It has also been reported that Newcastle winger Jacob Murphy is among other players on Huddersfield's wanted list.
"All of them are contracted to other clubs and this is why I've no idea if we are able to bring some further players in or not and once we've done our business, or as close as we are with Jason, I will let you know," Wagner added.
Huddersfield owner Dean Hoyle has vowed not to let the club "sleepwalk towards relegation", but Wagner is not sure how active the club will be during the transfer window.
"The problem is what the meaning of busy is," he said. "If making one deal means busy then hopefully we will be busy.
"If it means more then I have my doubts, nobody knows. We'll see what happens.
"I am absolutely aware of the circumstances we have at our club. I can deal with it and manage it and we can do everything that we can do. We have to wait. We are not the biggest dog in this (transfer) window competition. We will see."
The Terriers are bidding to halt a club record eight-game losing run in the third round of the FA Cup at Bristol City on Saturday and Wagner confirmed goalkeeper Ben Hamer will start in place of Jonas Lossl.
Central defender Christopher Schindler is suspended after his dismissal in Wednesday's home defeat to Burnley, but otherwise Wagner will choose from an unchanged squad.