Wolves have broken their transfer record to sign the Portugal midfielder Rúben Neves from Porto on a five-year deal. The Porto defender Willy Boly has also agreed a season-long loan.

Neves, who became the youngest captain in Champions League history when he captained his boyhood club at the age of 18 years and 221 days in October 2015, played for Wolves’ new manager Nuno during his spell at Porto last season.

“I’m very excited to play at this club,” said Neves, who featured in the Guardian’s Next Generation list in 2014. “It is a very big club and I hope to help the team to win their goals. I have always wanted to play in England and we have a good team. I think we can do good things this season.

“It is also a good opportunity for me to work again with a trainer I worked with last year. I am very excited to start and to play in front of the fans – I love that.”

Nuno is a client of the agent Jorge Mendes, who is known to have a close connection with Porto. Wolves have denied he has an excessive influence in their transfer dealings, although the club has knowledged Mendes was a “known associate” and friend of the club’s Chinese owner.

Wolves confirmed the fee for Neves – while undisclosed – is a club record, before announcing Boly’s move to Molineux. “I want to play well with this club and I want to make history here,” the 26-year-old said.

“I love this country and I love the football that is played here. I have always wanted to play here in England and now it’s a dream come true for me and now I will hopefully stay here for a long time.”