Exactly, yes you can. It means the wife is infertile! However, I have not heard this used much except in literature. The word may be out-dated and 'infertile' or 'unable to have children' could be more common.

While the sentence is right, the language is archaic and kind of insulting. Infertile is a much more acceptable term, although even that might get you a sideways glance. I would use "she is unable to have children". If they're trying to have kids and can't, then you might say "struggling with infertility".