Strand Larsen was Celta's top scorer in LaLiga last season with 13 goals. He has played 14 matches for Norway, scoring three goals.
"Everyone knows that bringing in a number nine was really important to us ... and Jorgen was our number one target for the position," Wolves' sporting director Matt Hobbs said in a statement.
"Although he’s still young ... still developing, he’s shown that he can score goals and puts a lot of work."