Pompey had agreed a deal to sign Halford on a one-month emergency loan deal last Friday, but the deal was held up by the club's administrators.
The move has now been finalised and Halford was handed an immediate debut against Millwall on Tuesday night.
Halford is well down the pecking order under Mick McCarthy at Molineux and he is happy to let the former Sunderland man go out on loan.
"He was out of my plans in the summer but he did well and got himself my squad of 25," McCarthy told the club's official website.
"He came back with the intention of doing it and got into the 25 but is out of the team and he needs to play some games.
"This is a good opportunity for him."
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