The clubs are still apart in their valuation of Traore with Spurs understood to be £5million short of Wolves' £20m asking price.
Despite this, there is a willingness on both sides for the move to happen in January.
Traore has been at Molineux since 2018 and has helped stabilise them in the Premier League, while also being a key player in their qualification for the Europa League in their first season back in the top flight.
But there's a sense Spain international Traore is yet to really fulfil his potential, having been very highly rated as a youngster at Barcelona.
However, Spurs boss Antonio Conte is understood to be a big fan and could mould him into a wing-back, like he did with Victor Moses at Chelsea.
Meanwhile, talkSPORT also understands Spurs outcast Tanguy Ndombele is keen on a move to Paris Saint-Germain.
PSG have opened talks with Spurs about a loan move with an option to buy Ndombele, who hails from France's capital, permanently in the summer.
Spurs record signing Ndombele has been training on his own after being told he is not part of Spurs boss Conte's plans.
It's understood the French international is also being monitored by Atletico Madrid.
The future of Traore's former Wolves teammate Matt Doherty is also uncertain, while Steven Bergwijn, who scored twice in stoppage-time to give Spurs an incredible win at Leicester, has been linked with Ajax.