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Wolves and Nelson Semedo both have the desire to extend the player’s stay at Molineux, according to the Express & Star.
The 31-year-old has been at the Premier League club since 2020 after he ended a three-year spell at Barcelona and he has been an important figure at Molineux.
Occasionally, Semedo has captained the side and has racked up more than 150 appearances for Wolves.
The Portugal international’s current contract is up next summer and without a new contract, he will be able to speak to clubs outside England over a potential pre-contract agreement next month.
The Premier League club, however, are looking to keep the Portuguese at Molineux and it has been suggested that the player also wants to stay put.
Even though the deal is considered not easy at the moment, both parties are eager to agree on a fresh contract.
Semedo’s leadership qualities and his important role under O’Neil are understood to be the key factors behind the club’s desire.
He has made 12 appearances in the Premier League for the club this season, while also turning out for Portugal in the Nations League.