After making 25 starts and 37 substitute outings during his first two years at Molineux, Silva was allowed to link up with Anderlecht during the summer.
During that stint, the 20-year-old received regular starts for the first time in his career, chipping in with 11 goals and four assists from his 32 appearances.
However, it was recently reported that there had been a falling out behind the scenes, leading to the possibility of a switch at the midway point of the campaign.
Although the Portugal Under-21 international received interest from a number of European football's top leagues, the decision has been made to move to the Eredivisie with PSV.
The Dutch outfit have required reinforcements due to Cody Gakpo and Noni Madueke departing for Liverpool and Chelsea since the turn of the year.
With playmaker Anwar El Ghazi being deployed down the middle of the attack for Tuesday's 1-0 defeat to Emmen, Silva is expected to immediately come into contention for Ruud van Nistelrooy's side.
Commenting on the development, Wolves sporting director Matt Hobbs said that a potential reduced schedule for Anderlecht due to their poor league position played a part in the decision.
With regards to PSV, they have 16 Eredivisie fixtures remaining and are still participating in the Europa League and KNVB Beker.
Meanwhile, Wolves have opted to cut short Ki-Jana Hoever's time at PSV with the defender having failed to hold down a spot in the team.
The full-back has been restricted to four starts and four substitute outings in all competitions, his most recent appearance being versus Bodo/Glimt in the Europa League on November 3.
Wolves now plan to find the Netherlands Under-21 international a new club before the end of the month in a bid to get his development back on track.
Despite his early promise, Hoever has made just 20 senior starts in his career for Liverpool, Wolves and PSV.