West Ham have been pursuing the winger all summer and on Wednesday tabled a fourth bid of ?7.5million that could eventually rise to over ?10million.
Wolves have accepted the bid and the 26-year-old is now in London to have a medical and discuss personal terms with the Premier League side.
The initial ?7.5million fee matches the record transfer fee West Ham paid for Craig Bellamy in 2007.
Jarvis joined Wolves from Gillingham in 2007 and has been a regular in the club's starting XI ever since.
The winger was particularly impressive last season when he scored eight goals and provided many assists for the midlands club, who were relegated in April.
The previous season Jarvis earned his only England cap to date when he came off the bench in a friendly against Ghana to become the first Wolves player to represent the Three Lions since Steve Bull 21 years earlier.