The 25-year-old began his career with the Whites before joining Scunthorpe in 2005 after previously impressing for the Iron on loan.
Keogh was in Wolves' match squad to face Blackburn on Saturday, but he will line up for Leeds against Hull City on Tuesday after the the formalities were completed on Monday.
Molineux chief executive Jez Moxey said: "I spoke to him yesterday and asked him what he wants to do and he's prepared to go."
Moxey would be willing to sell Keogh for the good of the striker's career, however he believes the loan arrangement suits both parties.
He continued: "We are of the view that we would prefer a sale for his sake but Leeds need some help more than anything, so this loan is a good arrangement for everyone."
Leeds manager Simon Grayson has expressed his delighted at capturing Keogh on loan.
The Whites have been short of attacking options this term with both Luciano Becchio and Davide Somma both sidelined through injury.
Leeds' attack was kept scoreless on Saturday as the nine-man Whites suffered a 1-0 defeat to Middlesbrough at Elland Road.
Grayson is delighted to have bolstered his attack and feels the 25-year-old is just what the club needed.
"Andy will strengthen our striking options," Grayson told the club's official website. "He's got plenty of experience, having played a lot at this level and in the Premier League.
"He's also returning to the club where he started his career so he knows what it's like here and understands the place."
Source: Team Talk
Source: Team Talk