The Gunners midfielder started the season in the first-team, but the youngster has seen his chances limited since the captures of Mikel Arteta and Yossi Benayoun.
Frimpong, who has made 14 appearances this term, admitted recently that he would consider a loan departure in order to get more action and a Premier League switch is on the cards.
Talks between Arsenal and Wolves are ongoing and a deal is expected to be concluded by Monday, with Mick McCarthy very keen to bolster his midfield options.
The 19-year-old will be seen as a replacement for Jamie O'Hara, with the former Spurs man sidelined for a month after undergoing surgery on a double hernia.
Arsenal last week