The 20-year-old, who has played 25 times for Wolves over the past two seasons, is heading to his native country in a bid to continue his development and secure more opportunities at a top European club.
PSV have just finished second in the Dutch Premier League, trailing title-winning Ajax by just two points and having the chance to qualify for next season’s Champions League.
Hoever, who has three years left on his contract with Wolves, last played for Bruno Lage’s side in March against Crystal Palace.
The former Liverpool player will now return to the Netherlands, having spent periods of his youth career at other Dutch clubs AZ and Ajax.
Strategic player marketing director Matt Jackson said: “You can’t let young players not play regular football for too long and he’s too talented not to play every week. He’s gone in a wonderful football club, who play in Europe, so we are delighted with how this will take them forward and hopefully they help PSV to be competitive, chasing Ajax to the top.
“Playing in the Champions League would be great for him. We had Nigel Lonwijk there so I saw the league a lot last year and really liked the culture. It’s a great place to be. and it is the country of origin of Ki-Jana.
“There’s a big club pressure that we like to challenge guys with and he will experience that. He could have played in England, we had offers, but with the stature of the club and the competitions they compete in, that can provide fantastic experiences.
“As professional footballers you want to play every week. It’s the game you love and it’s hard to be a team player – not playing regular football is frustrating. We want players to have the opportunity to progress and show that they are good enough to play every week in the Premier League, and Ki-Jana has that ability.