Since the end of the season, much of the transfer talk involving the Premier League outfit has been regarding exits and potential sales, the likes of John Ruddy, Marcal and Romain Saiss having already departed on free transfers.
Speculation persists that Ruben Neves may also leave Molineux over the coming weeks and months, the Portugal international attracting interest from the likes of Barcelona, Manchester United and Arsenal.
However, at some point, Wolves will need to acquire replacements, their priority being on strengthening the midfield regardless of whether Neves signs for a bigger club.
According to Record, the West Midlands side have been handed encouragement in their bid to sign Palhinha, a long-term target of the club.
The report claims that the 26-year-old has informed his current club that he wants to take the opportunity to move to Molineux this summer.
Last week, it was said that Fulham were ready to rival Wolves for the Portugal international's signature, the Cottagers wanting to make an impact on their return to the top flight.
Nevertheless, it appears that discussions between the relevant parties involving Wolves, Sporting and the player will result in a transfer to Bruno Lage's team.
Wolves have been tipped to spend somewhere in the region of £20m on a player who helped Sporting win the Primeira Liga title during the 2020-21 campaign.
The defensive-minded midfielder, who can also play in defence, was less influential this season, only featuring in 23 of Sporting's 34 league fixtures.
In total, Palhinha has made just 95 appearances for Sporting since making his debut in 2016-17, but loan spells have also been spent at Moreirense, Belenenses and Braga.
However, the report adds that any deal will likely be delayed until a resolution is found with Neves as Wolves look to receive their asking price.
Although Barcelona remain as the favourites to sign a player who has become a club legend at Wolves, they are currently not in a position to pay a fee which will likely be in the region of £50m.
Furthermore, United and Arsenal have other midfield options to consider, something which has the potential to be an effective bargaining tool when Wolves do not want to delay their own transfer business.