Wolves have had an opening bid of £15m for Ainsley Maitland-Niles rejected by Arsenal.
Talks between the clubs are ongoing and Wolves are expected to go back in with a higher offer, with Arsenal thought to want at least £20m.
Maitland-Niles, who started for Arsenal in the 4-1 pre-season victory over MK Dons on Tuesday, is open to a potential move.
Wolves manager Nuno Espírito Santo is keen to strengthen both his central midfield and full-back options and the versatile 22-year-old fits the bill on both counts.
The need for reinforcements has intensified after defender Jonny Otto was sidelined for between six and nine months after injuring his anterior cruciate ligament in Wolves’ Europa League win against Olympiakos earlier this month.
Maitland-Niles has three years left on his present deal at the Emirates, but is understood to be surplus to requirements as Mikel Arteta looks to raise funds to rebuild his first-team squad.
He played 32 times for Arsenal last season and has represented England from U17 through to U21 level.
He was also part of the England squad that won the U20 World Cup in 2017.
