The Denmark international failed to hold down a regular starting spot during his nine-year spell at the Emirates Stadium, and his contract was not renewed at the end of the 2013-14 campaign.
Bendtner had been linked with a move to Wolfsburg in recent days, and the Bundesliga club confirmed that the 26-year-old had arrived at the Volkswagen Arena on Friday.
After finishing fifth last season, narrowly missing out on a place in the UEFA Champions League, Wolfsburg sporting director Klaus Allofs believes Bendtner's signing will help the club's progression.
"We have increased the competition," he said in a press conference. "If we want to develop further, it is absolutely necessary."
Bendtner, meanwhile, said he did not take much persuasion to make the move.
"If a good club is interested, I am happy," he said. "I had not long considering to switch to Wolfsburg.
"I had German in school. I think I will not need to learn the language. The Bundesliga is a great league that has developed very well in recent years."
