Dave Jones is keen to take Wolves straight back into The Premiership after relegation last season, and believes Edwards could be a useful acquisition.
The Wales international was loaned out to Derby County last season, with Villa boss David O'Leary choosing other defensive options.
A statement on the club's official website confirmed that the total amount for the player could rise to £225,000.
"[Edwards] will join Wanderers on a three-year contract - subject to a medical - which is likely to take place on Monday and personal terms," read the statement.
"Wolves and Villa have agreed an initial fee of £150,000 which could rise to a maximum of £225,000."
