The 24-year-old links up again with former Lions manager Kenny Jackett, who quit over the summer before moving to Molineux.
Current Millwall boss Steve Lomas told the club website: "James is in the final year of his contract, he hasn't been in the team in the last few games and naturally wants to be playing.
"In an ideal world you want to keep all your best players in the squad, but under the circumstances we have allowed James to go on loan to Wolves.
"We also let Liam Feeney go to out to Bolton because he needed to be playing some games, and now I've had a good look at the squad as a whole I will look to bring someone else in if I feel there's an area where we need improvement or more cover."
- Sports & Recreation
- Kenny Jackett
- Steve Lomas