Nottingham Forest are ready to make a club-record bid for Wolves striker Matheus Cunha.
Forest are one of five Premier League clubs, including Arsenal, who are interested in signing the player.
It is thought that an offer of around £60m could be enough to tempt Wolves into selling.
Wolves are adamant Cunha is not for sale this window despite interest.
Cunha, who has two-and-a-half years left on his contract, is a key part of Wolves' squad as they fight to stay in the Premier League.
Sky Sports News understands Wolves are relaxed about Cunha's contract.
Discussions surrounding the new contract have centered around rewarding his form and contribution to the team over the last 12 months.
Despite the fact that a new contract has not been signed – it is understood that this has no immediate impact on his future at Wolves.
Wolves are also under no financial pressure to sell Cunha – they made over £90m from the sale of Pedro Neto and Max Kilman last summer, and their priority is Premier League safety.
For those interested in Cunha – the message is clear from Wolves; they have not received any offers, no contact has been established from other clubs, but – most importantly – he is not for sale.
The 25-year-old is believed to be extremely upset that coach Vitor Pereira singled him out for criticism after Wolves lost to Chelsea on Monday night. Pereira said he didn't like Cunha's body language.
Sky Sports News he reported on Tuesday Arsenal they are also monitoring Cunha's situation. Manchester City have also made Cunha a target, but it looks like they have decided to sign him Omar Marmoush instead.
Arsenal are deprived of attacking options after serious injuries Bukayo Saka and Gabriel Jesus – with Jesus' knee injury that will rule him out for the rest of the season.
“I think we are very short,” Arsenal boss Mikel Arteta admitted this week.
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Could Cunha swap Molineux for the Emirates in January?
Wolves do not want to let Kunja go, considering that they are 17th in the Premier League table.
But Sky Sports News understands that he is unlikely to sign a new contract at Molineux.
Forest they also made a bid for Brentford Yoane Warned.
But Brentford are unwilling to sell, and Forest's offer is understood to have been less than £22m – far less than Brentford's valuation of the striker.
meanwhile, Arsenal they used both their domestic loans on goalkeeper Neto from Bournemouth and Raheem Sterling from Chelsea.
Cunha had the fifth most shots in the Premier League this season
That means any move for Cunha would have to be a permanent deal unless Arsenal allow one of those players to return to their parent club.
Arsenal could also sign Neto or Sterling permanently to make room for a domestic loan move.
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