The Scot, was sent off twice in his last three first team outings, earning a suspension totalling five games and has decided to move to Molineux on loan after sorting himself out a deal with former boss Mick McCarthy when he turned out for City Reserves against Wolves earlier this month.
Said Kyle, about the loan which takes him up to June, to Wolves official website: "I'm delighted to be here. Wolves are in a good position to get into the play-offs, if not automatic promotion.
"And it's great to link up with Mick McCarthy again. He got the best out of me when he was at Sunderland "In the season that we got to the semi-finals in the FA Cup and the play-offs, I got 16 goals. Mick believed in me and gave me the opportunity to go out and prove myself. The following season I got a serious hip injury which ruled me out for 18 months and that knocked me back a lot.
"After that it's been hard getting back to how I was when I got all of those goals that season.
"I've never really had a sustained run in a team since then, and I know it's going to be difficult with all the strikers here. "But I'm here to work hard and fight for a place and do my bit for the team. It's going to be tough but it's a challenge I'm relishing."