The 23-year-old will move to the Rhein-Energy-Stadium for the next 18 months.
The former Under-21 international had failed to settle in his first six months with the Wolves since his transfer from Eintracht Frankfurt last summer and is now keen to help Marcel Koller's side to escape from the bottom-three.
Both clubs have failed to publish financial details of the transaction.
Streit is already the second youngster signed by Koller, who has previously landed Bayern Munich's highly-rated midfielder Markus Feulner and is now keen to sign another striker during the winter transfer window.
