The Magpies are in the market for another forward after losing Callum Wilson and the ongoing saga with Alexander Isak's potential departure.
As exclusively revealed by the Express & Star earlier this summer, Newcastle hold strong interest in Larsen and talks have already begun between intermediaries over a potential deal but the clubs are not in direct contact and will only hold negotiations if they believe they are getting closer to agreeing a fee.
It is understood it will take a package worth at least £60million for Wolves to consider any sale, but the club are desperate to keep hold of the striker who scored 14 Premier League goals last season.
Wolves will also need to bring in two forwards as a replacement for Larsen if he was to leave, with less than two weeks left until the transfer window closes.