The right-back made 31 appearances in all competitions for Wolfsburg in the 2021/22 season, registering the solitary assist and accumulating six yellow cards.
Having spent time with Newcastle United’s reserves in the past, Mbabu is eager to make a name for himself in the Premier League.
The 27-year-old had entered the final year of his contract with Die Wolfe and brings with him considerable experience of having played in both the Champions League and the Europa League.
Craven Cottage is the defender’s chosen destination and he will soon arrive in London to seal a move for £7m within the next 48 hours at most.
Fulham returned to the Premier League as Championship winners and will be looking to reinforce the right-back slot with Mbabu’s signing.
Primary target Neco Williams, who spent part of the 2021/22 season on loan at Fulham from Liverpool, opted to join another newly-promoted side in Nottingham Forest this summer.
Fulham will be hoping to end their recent cycle of relegation following promotion in successive seasons and enjoy a lengthy stay in the Premier League.