The fee is also a record received by Reading.
Doyle, 25 has signed a four year deal in the Midlands.
He told Wolves' official website: "I'm delighted to get the move sorted and can't wait to get going.
"I spoke to the manager and chief executive over a week ago and came to the training ground to see everything."I've been making my mind up over the last couple of weeks and am just really pleased the decision has been made.
"The facilities here are top class and it's great to be going back into the Premier League again.
"I'm sad to be leaving Reading because I had some great years there but I'm going with their blessing as well which is nice. This is a fresh start."