Wolves have been asked to increase their offer for Flamengo midfielder Joao Gomes.
The 21-year-old is keen to join Wolves but Lyon have topped their £15 million offer by £2.5m.
Gomes was already in London with his agent at the time of Lyon's counter offer, which is threatening to derail the transfer.
Despite his youth, Gomes has already racked up over 120 appearances in Brazilian football, including 64 in the 2022 season
The midfielder was part of the Flamengo side that won the Copa Libertadores last season and was also named in the Brazilian Serie A team of the season.
Wolves have managed to strengthen elsewhere this January, and announced the signing of Pablo Sarabia from Paris St Germain for £4.4million earlier this week.
The 30-year-old has signed a two-and-a-half-year deal at Molineux, but did not feature in Tuesday's 1-0 loss to Liverpool in their FA Cup third-round replay.
Sarabia was captain for Spain Under-19s when Wolves boss Julen Lopetegui was in charge.
Wolves have already signed midfielder Mario Lemina from Nice and forward Matheus Cunha on loan from Atletico Madrid during the January transfer window.