Defender Collins joins Wolves from Burnley on multi-year deal
Wolves paid a transfer fee in the region of £20.5 million for the Ireland international, according to British media reports.
"The central defender has agreed a five-year deal, with the option of a further 12 months, to become Bruno Lage's first new signing of the summer," Wolves said in a statement.
Collins will join his teammates for their pre-season training camp in Alicante, Spain.
The 21-year-old moves to Wolves after one season at Turf Moor, during which he made 19 league appearances as Burnley were relegated to the second tier.
"We've looked at Nathan for a while and admired him, so we're delighted," said Wolves technical director Scott Sellars.
"He's only 21, has played international football and had a good season last year with Burnley."
Wolves, who finished 10th last season, kick off the new campaign with a trip to Leeds United on Aug. 6.
The Midlands outfit has made one other signing this summer with Hee-Chan Hwang signing on a permanent deal from RB Leipzig.
The South Korean international spent last season on loan at Molinuex, making 30 appearances and scoring five times. He has just returned to pre-season from military training in his homeland.