News of Arsenal’s interest in Pedro Neto was revealed in David Ornstein’s weekly column.
Talks are said to have been taking place for more than a month and central to the dialogue is the intermediary Jorge Mendes, who represents Neto and is closely linked to operations at Molineux.
Neto, 22, extended his contract in March, committing him until 2027.
Ornstein: Arsenal want Wolves‘ Neto, Forest eye Reguilon, Leeds reject Harrison Newcastle bid
Negotiations between Arsenal and OGC Nice over a loan move for Pepe provide the north London club with a potential opportunity to sign a new winger before the transfer market closes.
While an addition will only be made if Arsenal can afford it and think it is going to improve their options, a number of candidates have come under serious consideration.
After securing Gabriel Jesus, Oleksandr Zinchenko, Fabio Vieira and Marquinhos, it is unlikely that Arsenal will be able to spend extortionately and they are conscious of financial fair play limitations.
It is unclear what level of finance it might take for Wolves to contemplate letting one of their key men depart, however, discussions are ongoing as Arsenal explore whether a deal could be achievable.
Neto exclusive: ‘My mum keeps telling me to shoot. She says I don’t shoot enough’