The 23-year-old Germany international, who has spent his entire professional career with the Eagles, has signed a four-year deal until 30 June 2018.
"We've been after the player for a while, so I'm happy Sebastian's now on board," said Wolves head coach Dieter Hecking. "He's played consistently well at Frankfurt and this transfer allows him to take the next important step in his career."
Jung, who made 113 Bundesliga appearances for Frankfurt, before earning his first international cap in Germany's with Poland last week, echoed his new mentor's sentiments exactly. "VfL Wolfsburg have got fantastic potential," he explained. "Obviously it's not easy leaving Frankfurt after such a long time, but I'm really looking forward to the new challenge. I want to further my development as a player at Wolfsburg and achieve something with the club."