The Premier League giants have now sealed a deal to take Sobhi to the John Smith's Stadium, with the Egypt international being given a three-year contract.
Wagner told the club's official website: "I'm very happy that we will be able to welcome Ramadan Sobhi to Huddersfield Town. He's a real talent and has achieved a lot for a player who is only 21 years old, playing over 20 times for his country ahead of this summer's World Cup.
"Just as Jonas Lossl, Elias Kachunga and Laurent Depoitre did, Ramadan will join our club on the back of a challenging season. However, he already has a lot of the qualities that we look for in our 'Terriers Identity'; he's skilful, direct and very quick-thinking. He still has a lot of space to improve too, which is very exciting."
Sobhi leaves the bet365 Stadium for an undisclosed fee having scored twice in 20 starts and 21 substitute outings in the top flight.