The 24-year-old joined Wolves from Swindon Town last summer, making 24 appearances in his debut season in the Midlands, but has fallen out of favour under new Wolves boss Walter Zenga and was told that he could leave.
Latics manager Gary Caldwell said: "We have been tracking Nathan for a long time and we tried to sign him last season before he went to Wolves.
"When we found he was available now, we worked hard to make it happen. He's exactly the sort of player we want at the club, young, dynamic, ambitious and he will fit in very well here. He is something we haven't really got in the squad, and adds to an area where we have struggled recently with injuries and needed strengthening. Our fans will like him - he has pace, intelligence and strength."