The midfielder, who has spent the first half of the 2017/18 season with The Latics, makes the switch to Bramall Lane on a three-and-a-half-year-deal.
Evans joined Wolves from Newport County in January 2013 and went on to make 67 competitive appearances during his five years at Wolves, scoring on three occasions.
After making his debut against Preston in August 2013, the 23-year-old played an important part in Wolves’ 2013/14 Sky Bet League 1 promotion season, appearing 26 times and finding the net twice.
The midfielder was also heavily involved the following campaign as Wolves narrowly missed out on the Play-Offs during their first season back in the Sky Bet Championship.
Evans also enjoyed two Sky Bet League 1 loan spells with Bradford City and Wigan Athletic in 2015/16 and 2017/18 respectively.
Speaking ahead of his move, the midfielder said: "I would like to thank Wolves for giving the opportunity to play at such a big club and thank the supporters who were good to me during my time there.
"I have thoroughly enjoyed my five years with Wolves and I hope the club continues to enjoy the success it has so far this season."
All at Wolves would like to thank Lee for his efforts during his time with the club and wish him the very best of luck for the future.
