Defender Sanderson had been on loan with Blues.
Wolves defender Dion Sanderson has been recalled from his loan at Birmingham.
The 22-year-old centre-back joined the Sky Bet Championship outfit last summer on a deal that was due to last for the whole 2021-22 season.
Having made 16 appearances for Blues, he returns to Wolves at a time when Romain Saiss is preparing to represent Morocco at the Africa Cup of Nations and Willy Boly and Yerson Mosquera remain injured.
Wolves technical director Scott Sellars said on the club’s website: “For Dion to be playing week in, week out at Championship level has been fantastic for his development. It prepares him for his career and he’s doing well, and this is a good opportunity to have him back in the building, to have a good look at him.
“With Saiss going to Afcon and Boly and Mosquera injured, this gives us an opportunity to bolster the squad and also gives Dion the chance to be back at Compton, and for him, he can hopefully get some minutes, and we’ll see how the situation develops.
“He’s had two years out on loan and played lots of football, so to have a spell back at the club will be useful for him and us.”
Sanderson, who has made one senior Wolves appearance and signed a new four-year contract with the club last summer, had spells on loan at Cardiff in 2019-20 and Sunderland last season.
Birmingham have since announced the arrival of Teden Mengi on loan from Manchester United until the end of the season.
The 19-year-old impressed during a nine-game spell with Derby last term and signed a new contract with United until the summer of 2024 in March last year.
Mengi told BluesTV: “It was important for me to try and find what was best for me, which is here at Blues and to just kick on and get as many games under my belt and improve as much as I can as a player and as a person.
“As soon as I heard about Blues I was straight on the phone to (Tahith) Chongy and he told me it is great, the lads are great, I am going to enjoy it, everyone is a nice person, so I am just looking forward to it.”