The Championship leaders have immediately loaned the 20-year-old out to League Two Colchester United for the rest of the season in order to further his development.
Wolves can announce that Ben Stevenson has joined the club from @Coventry_City on a two and a half year deal and he will now join @ColU_Official on loan until the end of the season. #WWFC— Wolves (@Wolves) January 31, 2018
"I'm really happy to sign for such a massive club with big aspirations, it's a big personal achievement for me," Stevenson told the Wolves website. "As soon as I knew of the interest I wanted to jump at the chance of joining such a big club.
"I've been at Coventry since I was 8 years old, it's the only club I've ever been at so it's got a big place in my heart and I'll always thank them for everything they did for me but it's time for me to go the next stage of my career.
"One of the things that attracted me here is the amount of players who have come through the Academy and have been around the first team, I can see the pathway to it so I just have to set myself the goal to get there."
Prior to his Molineux move, Stevenson had turned out 12 times in all competitions for the Sky Blues this season, scoring one goal and registering an assist.