"We have made approaches for Mikkel before but, under Kevin Keegan, we were knocked back," Wolves chief executive Jez Moxey told the clubs official website.
"When Kevin left and Stuart Pearce took over, we re-approached the club and a deal was finally agreed last night.
"We have paid a significant loan fee for Mikkel but we think this is the most sensible way to move forward as Glenn Hoddle wants to assess the player.
"Mikkel did well during his time here earlier in the season but, obviously, that was under a different manager and now Glenn wants the opportunity to see him before we commit to a full transfer."