While the West Midlands outfit have enjoyed a productive summer transfer window, movement is expected regarding incomings and outgoings before Thursday's deadline.
Wolves are allegedly on the brink of completing the signing of Stuttgart forward Sasa Kalajdzic, who will cost in excess of £15m.
That is likely to complete Bruno Lage's efforts to add to his options in the final third, but at least one new centre-back is likely to move to the Premier League outfit over the coming days.
Willy Boly failed to show for Sunday's Premier League fixture against Newcastle United, with Lage later indicating that the Ivory Coast international was attempting to force a move to Nottingham Forest.
If, as expected, Boly makes the switch to the City Ground, Wolves will want an experienced replacement, and it appears that they have identified a preferred target.
According to the Express & Star, Wolves have offered a three-year contract to Denayer.
The former Manchester City man is a free agent after ending his time with Lyon at the end of last season, but he has remained patient when it comes to making a decision on his next move.
Denayer, who made 139 appearances across four seasons with the French outfit, is not short of admirers and has previously been linked with Fulham.
As it stands, however, the most recent formal approach appears to have come from Wolves, who will want to tie up a deal as soon as possible.
Although Denayer never made a first-team appearance during his time at Man City, he has experience of representing teams in England and Scotland.
During 2014-15, the 35-cap Belgium international made 44 appearances for Celtic in all competitions, helping the Scottish giants complete a league and cup double.
In 2016-17, a total of 27 outings were made for Sunderland, who were relegated from the Premier League during that campaign.