Wolves have announced the signing of teenage full-back Luke Matheson from Rochdale.

The 17-year-old completed a medical with Nuno Espirito Santo's side on Friday and has returned to the League One club on loan for the remainder of the season.

Wolves have reportedly paid £1million to sign the Rochdale academy product.

Matheson made the headlines when he scored at Old Trafford in September as Rochdale held Manchester United to a 1-1 draw in the EFL Cup third round before losing on penalties.

He also impressed in the FA Cup third round this month, setting up Aaron Wilbraham to secure a 1-1 draw with Newcastle United at home, with the Magpies winning the replay 4-1.

Wolves sporting director Kevin Thelwell told the club's website: "Our recruitment team have watched Luke since he made his debut at 15.

"The system we play, it's set up for him. He plays at right-back for Rochdale at the moment, but he's a right-wing-back in our eyes because of his energy and ability to continually sprint and recover.

"At 17, for a boy to have so much experience, be English and have such a strong mentality is fantastic, and we think he's everything we're about.

"It's great for all of us to get him in the building, we're really excited and we think he's going to be a top talent."