The 25-year-old scored six goals in 16 games to fire Wolves into the Premier League after returning to Molineux on loan in January.
Under the terms of the loan, Wolves had until May 31 to make the deal permanent and Afobe will sign a contract on July 1.
Afobe bagged 23 goals in 48 games during his first spell with the Midlanders, prompting Bournemouth to pay £11m for his services.
But the ex-Arsenal youngster fell out with Cherries chief Eddie Howe earlier this year.
The pair clashed in the dressing-room after Bournemouth were humiliatingly dumped out of the FA Cup by Wigan.
Afobe also angered Howe by claiming he cried tears of joy after rejoining Wolves
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