The 56-year-old has a release clause at Saudi Arabian side Al Shabab that Wolves are prepared to pay and it is understood he is keen on the job.
But who is the potential new Molineux boss?
Footballing roots
The Portuguese football fanatic had a playing career at amateur level but retired at 28-years-old before moving into coaching.
He had success further down the pyramid in Portugal before impressing at Santa Clara, which earned him a job as Andre Villas-Boas' assistant at Porto.
He took over as head coach a year later and won back-to-back league titles.