Wanderers have accepted a nominal fee of £10,000 with a further £115,000 to be paid if the Hammers manage to gain promotion to the Premiership next season.
Wolves’ manager Glenn Hoddle has said whilst speaking to the clubs official website “We are happy to let Shaun go for a nominal fee as he is close to the end of his contract.
”He hasn't been in the first team in recent weeks and it is better for all parties if he can get a move and be playing somewhere else.
”Shaun is a good pro and I'm sure he will do well for West Ham. We wish him all the best.”
With all the injuries at the back, Alan Pardew should still however, be looking to bring in another defender before the close of the week.