Use Lycanthoth's Incense within the Maw of Lycanthoth in Hyjal to summon and kill Lycanthoth.
I think I understand what's happening here. The Twilight's Hammer fears that the ancients may someday rise up to oppose them. They'll do anything to stop the return of Goldrinn.
This "Lycanthoth" is a twisted version of our beloved wolf god, summoned by the Twilight's Hammer to replace him.
Bah! It is but a shadow of Goldrinn's power. <name>, kill this beast so that the true ancient can return. Take this incense and burn it in the Maw of Lycanthoth east of here. Slay that beast and free Goldrinn!