Wolves had hoped to sign Saints Brett Ormerod on loan as part of the deal but the striker turned down a move to Molineux.
"After lengthy discussions with Celtic over the last couple of days it was obvious they were keen to cut their losses," Wolves Chief executive Jez Moxey said.
"We decided it was in our best interests to let Camara move to a Premiership club where he will be in the shop window."