The deal is worth an initial 1 million pounds, potentially rising to 2 million pounds with add-ons, and runs until the end of the season with an option for a further year.
Traore, who spent three seasons under Nuno at Wolves between 2018 and 2021, has made over 260 Premier League appearances, scoring 14 goals and providing 25 assists during spells at Aston Villa, Middlesbrough, Wolves, and Fulham. Despite limited game time at Craven Cottage this season - just one start and 14 substitute appearances-he is eager to make an immediate impact at the London Stadium.
"I'm so happy to be here, so happy to help the team the maximum I can and show my quality," Traore said. "I love challenges. We have to go game by game, but I believe we're going to achieve what we're looking for."
Nuno welcomed the reunion with Traore, highlighting the winger's Premier League experience and his ability to offer a different attacking option. "He will bring energy, commitment, and determination to our challenge," Nuno said.
Traore's arrival marks West Ham's third signing of the January window, following forwards Pablo Felipe and Taty Castellanos. Meanwhile, the club has already sold Guido RodrÃguez and Niclas Fullkrug and is close to offloading midfielder Lucas Paquetá back to Brazil.
The Hammers are currently 18th in the Premier League with 20 points, five adrift of safety, though consecutive wins in their last two matches have boosted hopes of survival. Traore is expected to make his debut against Chelsea on Saturday, offering fresh impetus as West Ham battle to avoid relegation with 15 league games remaining.