The teenage attacker has agreed a three-year deal with the German top-flight side and will reportedly be a part of the club's first-team next season. Hinds is the latest Gunners' youngster to move abroad with Chris Willock signing a five-year deal with Benfica last month.
"VfL Wolfsburg have a further signing to announce. English junior international Kaylen Hinds makes the move from Arsenal FC and has signed on with the Wolves until 2020," read a statement on the club's website.
"Kaylen Hinds, who will wear the number 32 jersey, comes from Arsenal's Under 23 team, with whom he was also involved in twelve UEFA Youth League matches."
Hinds was said to be held in high regard at the Emirates Stadium spent last season out on loan at Stevenage in League Two, where he made 14 appearances.