The highly-rated youngster arrived in Wolverhampton on Wednesday, after completing international duty with Portugal under-21s.
Aged 20, Vitinha enjoyed his first taste of elite level football with Porto last season, making his debut in January and being rewarded with a further seven appearances as the Portuguese giants won both the Primeira Liga and Taca de Portugal last term.
Wolves executive chairman Jeff Shi said: “Vitinha is a crucial signing and an integral component in our recruitment plan for this summer.
“He is an exciting and special young talent, with an abundance of technique and creativity, who can provide a fresh option this season.
“Vitinha signing demonstrates our ambition and strategy to further evolve our first team and continue to progress on the pitch.”
Two of the midfielder’s appearances last term came alongside Fabio Silva, who he rose through the ranks alongside within a Porto academy also responsible for Ruben Neves’ grounding.
Vitinha himself has been on Porto’s books since 2011, winning the UEFA Youth League in 2018/19 alongside Silva and also spending time on loan at Padroense as part of his development.
Opportunities with Porto B duly followed, as did eight goals and three assists in 15 matches, fast-tracking his promotion to the first-team.
The youngster has enjoyed similar progression on the international stage, representing Portugal in four separate age groups in the past two years.
While representing his country, Vitinha was voted 2019’s breakthrough player at the world-renowned Toulon Tournament and spent his most recent international stint alongside Ruben Vinagre and Pedro Neto.
Now, Vitinha will join up with the Wolves squad ahead of Monday’s Premier League opener against Sheffield United and could make his debut at Bramall Lane.