Nottingham Forest are among the clubs considering a move for Matheus Cunha, with Arsenal also monitoring the Wolves forward.
Cunha has been given a new Wolves contract but he is considering his options.
Sky Sports News reported on Tuesday that Arsenal are also monitoring Cunha's situation.
Arsenal are left without attacking options after the serious injuries to Bukayo Saka and Gabriel Jesus. Jesus' knee injury will 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 on the list at Manchester City, but they opted to sign Omar Marmoush instead.
Wolves don't want to let him go as they sit 17th in the Premier League.
But Sky Sports 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 said to have been less than £22m – well below Brentford's valuation for the forward.
Meanwhile, Arsenal have used both domestic loan spots for goalkeeper Neto from Bournemouth and Raheem Sterling from Chelsea.
That means any transfer for Cunha would have to be a permanent deal unless Arsenal allow one of those players to return to the parent club.
Arsenal could also sign Neto or Sterling permanently to free up a domestic loan spot.
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