The Wolves Academy product has committed his future to Wolves after making 16 appearances last time out and will now target regular game time under a manager he knows well.
Under Steve Cooper, Gibbs-White was an under-17 World Cup winner with England three years ago and will spend the 2020/21 campaign with the now Swansea boss.
Until now, the Stafford-born youngster has spent his career impressively rising the Wolves system, joining at the age of eight and making his debut at 16 away to Stoke City in January 2017.
Under Nuno Espirito Santo’s guidance, Gibbs-White played his part as Wolves won the Championship title and went on to experience the Premier League and Europa League in old gold.
Ahead of the next phase of Gibbs-White’s development, executive chairman Jeff Shi said: “Morgan’s been with Wolves from a young age and has shown the genuine talent and potential he has, so it’s a positive step forward to have his new contract agreed.
“Now, we see Swansea as the ideal loan move for him. Hopefully he’ll receive opportunities to impress under a manager he knows well and we’re looking forward to monitoring his performances and development.
“Hopefully Morgan can help Swansea achieve their goals as a club through his performances on the pitch, then return to Wolves next summer stronger, and more experienced from his time in South Wales.”
All at Wolves would like to wish Morgan the best of luck during his time at the Liberty Stadium.