Kightly, 26, in the final year of his contract at Molineux, will now discuss personal terms with the Potters.
"We have agreed a fee with Stoke City about the transfer of Michael Kightly, which is now subject to Michael agreeing personal terms and completing a medical," Wolves chief executive officer Jez Moxey told the club's official website.
"It has been Michael's wish to seek a fresh challenge and try and remain in the Premier League if at all possible, rather than sign a new contract to extend his stay with us here which has been offered to him.
"Given that reality, and the danger of losing Michael for nothing at the end of his contract, we have reluctantly given him permission to speak to Stoke City."
Kightly, whose career began at Southend, joined Wolves after an initial loan spell in January 2007 and he has made over 100 appearances for the West Midlands club.
Meanwhile, Stoke striker Peter Crouch also thinks Michael Owen should join the Potteries outfit if he wants to enjoy playing regular football again.
Crouch has not looked back since leaving Tottenham to sign for Stoke for a club record £10 million deal 12 months ago, scoring 14 goals in 40 appearances.
The 31-year-old feels Owen would enjoy a similar lease of life if he signed up to manager Tony Pulis's squad, insisting it would not be a step down after being released by Manchester United earlier this summer.
"I know Michael has a big decision to make after leaving a club the size of Manchester United, but I had a similar decision to make last summer," Crouch told The Sun.
"At Tottenham we were challenging for a Champions League place every season. We're not doing that at Stoke, but we are building something worthwhile here. If you want to play regular football and enjoy playing again, this is a great place to be.
"I was really happy the manager could give me games when I was in and out of the Tottenham side.
"Coming to Stoke was never a step down. I'd rather play a big part in something smaller than be a small part of something bigger."
- Michael Kightly
- Stoke City
- Michael Owen