Wise has worked at Morgan Stanley for 13 years and was most recently the chairman of its equity capital-markets division and a co-head of equity capital markets in the Americas, the business daily said.
Financial institutions group is a part of Goldman's equity capital markets group, Wall Street said.
Michael Wise, who will also become a Goldman partner, succeeds Stuart Bernstein, who is moving to the New York-based company's investment-banking group to head its clean technology and renewable-energy companies group, the paper said.
Goldman Sachs could not immediately be reached for comment by Reuters outside regular U.S. business hours.
(Reporting by Archana Shankar in Bangalore; Editing by Erica Billingham)