Edworhy will recieve no weekly wage or win bonus and will only get paid for expenses. The deal has come about to beat the newly enforced transfer window which closes at the end of this month and re-opens in January.
Wolves could not afford to sign the right-back at this moment in time because they needed to off-load players first, so the two parties came to the agreement that Edworthy would play for nothing.
The deal helps Wolves increase their full-back department, which currently consists of Lee Naylor, Denis Irwin and Mo Camara and also puts Edworthy in the shop window, but the 29-year-old says that he really wants to stay at Molineux.
Edworthy said: "I'm enjoying myself at Molineux - it's a great setup and after sitting with the supporters for the Burnley game last week, I realise just how passionate they are.
"I desperately want to be a part of the club and a part of getting them to the Premier League."
Chief Executive Jez Moxey also mentioned Edworthy's desire to stay with Wolves saying: "To be fair to Marc he has had chances to go to other clubs but he wants to stay with Wolves."
Devon-born Edworthy said he understands the financial difficulties in football at the moment, thanks to the collapse of ITV Digital. He says he hopes to thrash out a permanent deal soon but says: "I'm at a good club and keeping fit into the baragin so I'm happy at the moment."
Meanwhile, the other man who has been training with Wolves since pre-season, young keeper Russel Howarth is now training with Tottenham.
Wolves made a permanent offer for the England U-21 International, but it was apparently six-times under the valuation of his current club, York City.
Jez Moxey simply said: "Russell has to look after his career and he has had an offer from Spurs to train there."