Newcastle winger Sammy Ameobi is set to sign a new deal and then join Wolverhampton Wanderers on loan, sources have told ESPN FC.
Ameobi's current deal expires at the end of this month and he would be free to join another club, but the 23-year-old is expected to sign a new deal and then be farmed out on loan.
A host of clubs, including Real Sociedad, Crystal Palace and West Brom have expressed an interest in Ameobi, but the former England Under-21 international has opted to stay at St James' Park.
Newcastle are thought to be willing to send Ameobi out on loan next season so that he can play regular first-team football and the news has alerted several Championship clubs.
Cardiff were hoping to land Ameobi on loan, but it appears Wolves have stolen a march on their Championship rivals by making a move to bring the winger to Molineux.
Wolves boss Kenny Jackett sees Ameobi as an ideal replacement for Bakary Sako after the Mali international left the club upon the expiration of his contract.
Ameobi has scored four goals in 66 first team appearances, including a loan spell with Middlesbrough during 2013.