Wolves boss Nuno Espirito Santo said Diogo Jota is "going to the right place" after Liverpool agreed to sign the forward for £41m in a deal that could rise to £45m with add-ons.
The Portugal winger, 23, is set to sign a five-year contract at Anfield.
Dutch defender Ki-Jana Hoever, 18, has moved the other way for £9m and a possible £4.5m in add-ons.
"We did the deal because it is good for everyone," said Nuno. "Diogo was happy here but players like new challenges."
The Portuguese continued: "Diogo is amazing and everybody knows the relationship we built.