The defender signs a one-year deal with the Whites having impressed on trial during pre-season, and was previously on the books of fellow Sky Bet Championship side Nottingham Forest.
Starting his career at Lincoln City, the former England youth international joined Liverpool in August 2005.
Making his Premier League debut against Bolton in December 2007, the centre-back signed for Championship side Scunthorpe United on loan until the end of the season the following month.
Spending the 2008/09 season on loan at Leicester City, Hobbs was named in the PFA Team of the Year as the Foxes won promotion as League One champions before joining the club permanently at the end of the campaign.
Joining Hull City after a successful loan spell in June 2011, he signed a temporary deal with Nottingham Forest two years later before signing for the club permanently.
Speaking to bwfc.co.uk after completing the move, Hobbs said: “I'm delighted to get the deal over the line.
"Obviously I've been up here with the team training for a few weeks now and to have agreed a year-long contract is fantastic. I just can't wait to get started now."
Wanderers manager, Phil Parkinson, added: “I’m really pleased that we have signed Jack.
"He’s been with us through pre-season and has not only shown what a good player he is, but also what a good character he has.”
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