Wolves are in talks with Al-Shabab manager Vitor Pereira to replace head coach Gary O'Neil, who was sacked by the club on Sunday.
The Premier League strugglers are looking for a swift appointment and the money they would have to pay as compensation to secure former Porto and Olympiakos boss Pereira is not believed to be an issue.
Wolves have been assessing their options and have sounded other possible replacements, including ex-West Ham and Manchester United boss David Moyes.
But club sources have told BBC Sport that Pereira is the frontrunner for the job.