Sidwell was reported to be considering over offers from other clubs, and Wolves chief executive Jez Moxey has confirmed that talks are under way.
Sidwell has played only four league games for Villa this season and was signed from Chelsea for £5m in 2008.
"If he's available and we can agree a fee and terms, I would take him in a heartbeat," said Wolves manager Mick McCarthy after Wednesday's 1-0 win over Chelsea.
"If that's the case we'll sign him."
Sidwell began his professional career with Arsenal in 2001 and has also played for Brentford, Brighton and Reading.
Source: BBC Sport
Source: BBC Sport