The defender is set to join the Championship side on loan for the 2021/22 season, provided there are no further setbacks as he continues his return from a back injury sustained during the last campaign.
Sunderland have been keeping tabs on Sanderson following his successful loan spell on Wearside last season, with some reports suggesting that the club had seen a bid knocked back by Wolves earlier this summer.
The 21-year-old has a year remaining on his contract at Molineux, but Wolves retain an option to extend that by a year.
As such, there was always a recognition that the deal would be a difficult one for Sunderland to do given that club option and interest from Championship clubs in a loan deal.
Sheffield United are one of the sides who have been paying close attention to Sanderson’s situation – but it’s Birmingham City who are closing in on a deal.
“We’re hoping that that [Sanderson deal] will get done soon,” said Birmingham boss Lee Bowyer, speaking to BBC Radio WM.
"Something has been agreed but he’s just coming back from an injury, so we’re just making sure everything is right on the medical side of things.
"I don’t think there’s any problems and it’s just a matter of time I think.
"It’s another good addition to the squad.
"He defends properly, and when I say properly he marks, he puts his body on the line and is comfortable on the ball.
"He’s another who ticks all the boxes.”