The 26-year-old Algeria international has only started two Premier League games this term with a further two starts in a total of 13 appearances.
He is available to make his debut in Tuesday's league game against Burnley.
"We needed another midfield player who can play either side and gives a bit of flexibility," Reds manager Steve Cotterill told BBC Radio Nottingham.
"At the beginning of the week Guy Moussi had a problem with his calf. Even if Guy was fit, at the moment, he's ended up going in the back four for us, which is not ideal. So, I needed another midfield player with some energy in there."
Guedioura initially joined Wolves on loan in January 2010 before signing permanently at the end of the season.
But he has struggled to earn a regular starting place at Molineux and also broke his leg last season.

It is believed to be the first alleged breach of the Terrorism Prevention and Investigation Measures (TPim).
The suspect appeared at the Old Bailey accused of failing to contact a monitoring company and report to a police station twice in January.
The Home Office has refused to comment on the case.
TPims replaced control orders in January 2012.
The suspect - who can only be referred to as BM - was one of nine British citizens subject to a TPim when the figures were last disclosed in March.
The BBC is not aware of anyone else who has appeared in court charged with a breach of a TPim.
The Home Office said: "We do not comment on individual cases.  The police investigate all breaches of TPims and will prosecute where that is viable."
Those subject to a TPim can be ordered to stay overnight at a specified address and report to a police station every day.
Other measures include a ban on contacting particular individuals, going to certain areas and places and travelling abroad.
Labour has argued that TPims have "weakened" public protection against terrorism.
In March, the independent reviewer of terror laws, David Anderson, said TPims could prove less effective than control orders because they can be imposed for a maximum period of two years only.
The court heard that BM is charged with two counts of breaching Section 23 of a TPim order.
The allegations are that on 16 January he failed to contact a monitoring company, and on 27 January failed to report to a police station.
BM, who has a grey beard and was dressed for the hearing in a white shirt, cannot be named nor have his address published for legal reasons.
The prosecutor Louise Gray asked for a provisional date of 2 July to be set for a plea and case management hearing.
The defendant was granted unconditional bail although he remains subject to the restrictions imposed by his TPim.
A trial date was not set.

The Scottish Crofting Federation (SCF) and NFU Scotland have been calling for increased incentives in a grant scheme available to crofters.
Ms McLeod said the Scottish government was prepared to look at offering loans.
Fiona Mandeville, of SCF, said such assistance could help young crofters to get on to the housing ladder.
She said: "We do see the loan element as key to the success of this scheme.
"This scheme really needs to be aimed at young crofters who maybe find it hard to get a mortgage, or to get a start on the housing ladder.
"I think it is important to look at the croft house grant scheme as another element of social housing."
Ms McLeod said the government would hold further consultation on the Crofter Housing Grant Scheme while on a visit to Inverness.
Western Isles Council - Comhairle nan Eilean Siar - has welcomed the move.
Donald Crichton, vice chairman of the comhairle's sustainable development committee, said: "Over the last year we have made a strong case to the minister and civil servants for increasing and strengthening the grant as one of the best mechanisms for sustaining our crofting communities.
"This further consultation demonstrates that the minster has been listening and taking on board our views and we are encouraged by the proposals that are emerging."

1 April 2017 Last updated at 12:33 BST
The tiny pad was appraised by manuscripts specialist Matthew Haley during an episode filmed at Caversham Park in Berkshire.
The programme will air on Sunday at 20:00 BST on BBC One.
Nottingham Forest have signed Wolves midfielder Adlene Guedioura on loan until the end of the season.
[NEXT_CONCEPT]
A suspected terrorist has been charged with breaching conditions imposed as part of the government's new terror monitoring powers.
[NEXT_CONCEPT]
Crofting Minister Aileen McLeod has said the government is willing to look at the potential of reintroducing loans for building croft houses.
[NEXT_CONCEPT]
A 17th Century notebook analysing the work of William Shakespeare has been described as "extraordinary" by an Antiques Roadshow expert.