First Division rivals Reading and Crystal Palace are both trying to sign Wolves defender Ivar Ingimarsson.
The Royals look favourites to land the central defender, who played under new Reading manager Steve Coppell at Brentford.
Wolves have agreed a deal with Reading and the player is now discussing personal terms.
But Wolves chief executive Jez Moxey confirmed that Palace have also made an offer for the 26-year-old Iceland international.
"We have agreed a deal with Reading and Ivar is currently involved in discussions with them regarding personal terms," Moxey said.
Ivar and his agent are aware of their interest
Jez Moxey, Wolves chief executive
He added: "If he is happy with the remuneration then I see no reason why the transfer can't be concluded. But, at the moment, we await the outcome of those talks.
"Crystal Palace have also made us an offer but this has not yet been finalised. Ivar and his agent are aware of their interest."
Ingimarsson is out of contract at Molineux at the end of the season, though Wolves have the option of extending his deal for a further season.
Reading's transfer bid is worth £100,000, rising to almost double that figure depending on appearances. A sell-on clause would also be written in to any contract
The Royals look favourites to land the central defender, who played under new Reading manager Steve Coppell at Brentford.
Wolves have agreed a deal with Reading and the player is now discussing personal terms.
But Wolves chief executive Jez Moxey confirmed that Palace have also made an offer for the 26-year-old Iceland international.
"We have agreed a deal with Reading and Ivar is currently involved in discussions with them regarding personal terms," Moxey said.
Ivar and his agent are aware of their interest
Jez Moxey, Wolves chief executive
He added: "If he is happy with the remuneration then I see no reason why the transfer can't be concluded. But, at the moment, we await the outcome of those talks.
"Crystal Palace have also made us an offer but this has not yet been finalised. Ivar and his agent are aware of their interest."
Ingimarsson is out of contract at Molineux at the end of the season, though Wolves have the option of extending his deal for a further season.
Reading's transfer bid is worth £100,000, rising to almost double that figure depending on appearances. A sell-on clause would also be written in to any contract