Reid, who has recently been on loan at Blackpool, could make his Wolves bow in the match against Bristol City at Ashton Gate this weekend.
"I was at Blackpool and went back to West Ham, was in and around the squad travelling to games," he said on completing his temporary move to Wolves.
"I still wasn't playing, though, so I spoke to the manager who agreed I could go out on loan again.
"They wanted me to go to a club more local to London.
"Then the phone call came from Wolves and it wasn't a difficult decision."