Nottingham Forest are among the clubs considering a move for Matheus Cunha, with Arsenal also monitoring the Wolves forward.
Cunha has been offered a new Wolves contract but he is considering his options.
Zone Sporty VIP News reported on Tuesday that Arsenal are also keeping an eye on Cunha's situation.
Arsenal are bereft of attacking options following serious injuries to Bukayo Saka and Gabriel Jesus - with Jesus' knee injury set to rule him out for the rest of the season.
"I think we are very short," Arsenal boss Mikel Arteta admitted this week.
Cunha was also in the list at Manchester City but they have opted to sign Omar Marmoush instead.
Wolves do not want to let him go given they are 17th in the Premier League table.
But Zone Sporty VIP News understands he is unlikely to sign a new contract at Molineux.
Forest have also made a bid for Brentford's Yoane Wissa.
But Brentford are not keen to sell and Forest's offer is understood to have been lower than £22m - far short of Brentford's valuation of the forward.
Meanwhile, Arsenal have used both of their domestic loan spots up on goalkeeper Neto from Bournemouth and Raheem Sterling from Chelsea.
That means any move for Cunha would have to be a permanent deal unless Arsenal let one of those players return to their parent club.
Arsenal could also sign Neto or Sterling permanently to free up a domestic loan spot.
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