Republic of Ireland defender Ian Harte has left Levante by mutual consent.
The 29-year-old left-back, who had one year left on his deal, saw injury problems limit him to 66 league appearances in three seasons.
Harte spent nine years with Leeds and he left for Spain upon their relegation from the Premier League in 2004.
Wolves have completed the signing of Republic of Ireland prospect Kevin Foley from Luton.
The 22-year-old defender has agreed a three-year contract at the Coca-Cola Championship club after joining for an undisclosed fee.
Foley said: "I've been at Luton since I was nine so this is a bit strange. But being a professional footballer is a short career and you have got to take your chances when they come."
Foley and another summing signing, Freddy Eastwood, are set to make their debuts for Wolves in the Carling Cup tie against Bradford at Molineux tomorrow.