Wolverhampton is seeking to take on Jonny Castro Otto from Atletico Madrid full time. The Wolves are already in talks with Atletico Madrid about completing a club record £18m transfer for the defender.
Defender Otto joined Wolves on loan during the summer and has made 21 appearances in all competitions.
The 24-year-old full-back has impressed on his return after a month out with a knee injury.
He made the move to Wolves straight after joining Atletico from Celta Vigo and could now be leaving Madrid despite never playing for his parent club.
If Wolves reach an agreement it would equal the fee they paid Middlesbrough for winger Adama Traore in July.
By Oluwatoyin Adeleye