Lopetegui in talks to terminate Wolves contract with O'Neil in line to replace him

Ex-Bournemouth manager Gary O'Neil is favourite to take over from the Spaniard at Molineux.

talkSPORT revealed on Monday that the former West Ham midfielder was a potential option to replace the 56-year-old.

Lopetegui only arrived at the Midlands outfit in November, where he guided them to Premier League safely against the odds.

Wolves were embroiled in a relegation battle when he took over from Bruno Lage, before ending up in a respectable 13th-placed finish under Lopetegui's tutelage.

But his future has been hanging in the balance after publicly voicing his frustration over the lack of incomings this summer.

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Ruben Neves, Nathan Collins, Raul Jimenez and Conor Coady have all been sold for a combined £91million.

Wolves, who have turned Matheus Cunha and Boubacar Traore's loan spells into permanent stays, have also brought Matt Doherty back to the club on a free transfer.

Lopetegui recently discussed Wolves' financial problems when speaking to Spanish journalist Gulliem Balague on his YouTube channel.

He said: "Unfortunately we have this situation. I am not a financial adviser of course but I am a coach and I know we need to be competitive in the Premier League.

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"I hope that we are going to improve this situation because we need that. The players that are here, they're committed but of course all of the rest is true.

"Unfortunately, the situation was reality, it was bad news for me of course.

"I'm trying in the summer; this is the plan A that we have and after that we have to adapt to the situation to the plan B, trying to think about the players that are cost effective signings in this situation.

"It is true that in this moment, we can't develop the plan B either. We lost a lot of players, and it is true that we think the club want to sell more players.

"This situation, we need players to balance the squad and be competitive in the Premier League for sure."

But it seems that his time at Wolves is coming to an end, with O'Neil a serious option after impressing at Bournemouth.

Taking over from Scott Parker, O'Neil helped the Cherries finish 15th in the top-flight where he earned rave reviews due to his free-flowing style of football.

Whoever is in the dugout for Wolves know they have a tricky start to the new season, as they face Manchester United, Brighton and Liverpool in their opening five fixtures.