The 22-year-old played nine times for the Sky Bet League One club during a loan spell which began in mid-November and Wolves boss Kenny Jackett was keen to make the switch permanent.
Given the Rams' present form under Steve McClaren, Jacobs was unlikely to get regular first-team football at the iPro Stadium and had made just one substitute appearance under the current regime.
"It goes without saying we wish Michael all the very best in his future career with Wolves and thank him for his contribution in a Derby County shirt," McClaren told the club's official website.
"We just felt he should be playing first-team football at this stage of his career and unfortunately, with the options at his disposal, that is something we weren't able to offer him."
- Sports & Recreation
- Kenny Jackett
- Steve McClaren