The 20-year-old Scotland international has penned a two-season deal with the Super League outfit.
Wolves coach Tony Smith told the club's official website: "I'm excited about Matty coming back to the UK after a stint at the Gold Coast in Australia and I think he'll come back a much better player than when he left - and he was already a very good player.
"I'm excited about him; he's young and very, very talented. He's eager to learn and improve and he fits the mould that we are looking for in Warrington. We don't bring many in and they've got to be of high quality. He's got a great attitude and I really look forward to working with him."
Russell has been included in the Scotland squad for the upcoming Rugby League World Cup.