The 23-year-old, who made his international debut for Germany against Poland earlier this month, is a product of Frankfurt's youth system and has played 113 times for the club in the Bundesliga since his debut in 2009.
However, Jung will move to the Volkswagen Arena on a contract until June 2018 and looks set to again feature in Europe with his new club.
The right-back made six appearances in the UEFA Europa League for Frankfurt this season.
Coach Dieter Hecking expressed his pleasure at signing Jung, telling the club's official website: "For a long time we have tried for the player, so I'm happy that we were able to gain Sebastian.
"He has shown consistent performances in Frankfurt and with the change he can make the next important step in his development."
Jung added: "Wolfsburg is a club with an excellent sporting outlook.
"Of course, saying goodbye to Frankfurt after such a long time is not easy but I am really looking forward to this new task."
