Arsenal striker Benik Afobe is in talks with Wolves over a permanent exit from the Emirates, sources have told ESPN FC.
Afobe has been on loan at MK Dons since the start of the season and he has impressed at the League One club.
The 21-year-old has scored 19 goals in 30 games for the Dons this season and his form has attracted interest higher up the football pyramid.
The likes of Huddersfield and Millwall have been linked with moves for Afobe, but it appears Wolves are in pole position to land the striker.
MK Dons boss Karl Robinson confirmed Afobe missed Saturday's defeat to Crawley as he was in talks with an unnamed club and ESPN FC has learnt that the mystery club is Wolves.
Wolves boss Kenny Jackett has made a new striker one of his top priorities in this month's transfer window and sees Afobe as someone who can boost their bid to promotion to the Premier League.
Afobe, who came through the youth ranks at Arsenal, has never made a first-team appearance for the Gunners and has had spells out on loan at Huddersfield, Reading, Millwall, Bolton, Sheffield Wednesday and MK Dons.
Arsenal are now prepared to sell the England under-21 international as he is unlikely to break into Arsene Wenger's first-team plans and Wolves are set to win the race for his signature.