Hoddle, who has been out of management since being sacked by Tottenham Hotspur in September 2003, will be presented at a Molineux news conference at 1630 IST on Tuesday.
Relegated last season from the money-spinning Premier League, Wolves are languishing down in 17th place in the 24-team second tier of English football and fired Dave Jones as manager on November 1.
Hoddle, who guided Swindon Town into the Premier League in 1993, will be expected to take Wolves back to the top flight after they finished bottom last season.
Hoddle spent most his playing career at Tottenham, but also had spells at Chelsea and Monaco, where he lifted the French league title in 1988 under current Arsenal boss Arsene Wenger. He won 53 caps as an England international.
Considered one of the most gifted ball-playing midfielders of his generation, the 47-year-old has been no stranger to controversy in his management career.
His three-year stint in charge of England, during which he called on the help of a faith healer, ended in 1999 after he was quoted as saying that disabled people were paying for sins in a former life.
Hoddle took over at Southampton the following January but then stunned the south coast club by returning to White Hart Lane as manager of his beloved Spurs in March 2001.
However, the homecoming lasted only two and a half years before Hoddle was ousted after a run of disappointing results and complaints by players about his management style.
More recently, Hoddle has been a television pundit and linked with a management return to Southampton, who have struggled ever since Gordon Strachan stepped down as manager in February of this year.
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