Head coach Bruno Lage is keen to strengthen in the middle of the pitch this summer, particularly with the future of star man Ruben Neves remaining unresolved.
Wolves are allegedly attempting to sign Sporting Lisbon duo Matheus Nunes and Joao Palhinha, the former for a club-record fee of in excess of £40m.
However, according to ESPN journalist Javier Gil Navarro, the Premier League outfit are also interested in winning the hotly-contested race for Fernandez.
The 21-year-old is regarded as one of the top emerging South American talents in his position, already starring in the centre of the pitch for the Argentine giants.
In total, 11 goals and nine assists have been contributed from 49 appearances in all competitions, Fernandez capable of playing in both defensive and attack-minded roles.
Although Fernandez is yet to represent his country at senior level, he was called-up to the squad back in November, an indication that he is on the radar of Lionel Scaloni ahead of the World Cup.
The report claims that Wolves' head of scouting Matt Hobbs is scheduled to travel to Argentina on Tuesday in a bid to secure what would be an eye-catching deal.
Fernandez possesses a release clause of €20m (£17.19m), a fee which has not gone unnoticed by some of European football's top clubs in recent months.
As recently as last month, it was claimed that Manchester City, Manchester United and Real Madrid were all admirers of Fernandez and could make a bid of their own this summer.
City boss Pep Guardiola has already acted to sign one of Fernandez's teammates with Julian Alvarez due to feature in his first-team plans at the Etihad Stadium for 2022-23.
Fernandez was questioned on his future earlier this year, indicating that he planned to remain focused on performing for his boyhood club.
Speaking to reporters, he said: "Calmly, humbly, with a low profile. I try to work day by day to keep improving and growing.
"Luckily I'm finding regularity, continuity and my teammates and the coaching staff help me a lot. I handle it well. I'm grateful for the compliments, I read a lot of the messages they send and I'm happy. I will continue on this path."
Navarro has cited that Fernandez's desire to help River Plate to the Copa Libertadores trophy this campaign could act as a potential stumbling block, the final of that tournament not being scheduled until the end of October.