English Premier League Wolverhampton Wanderers want to sign Brazilian centre-back Felipe from Atletico Madrid in the January transfer window, sources familiar with ongoing talks told Reuters on Wednesday.
A source close to Wolves said that the club and Felipe have already reached an agreement on the terms of his contract, and they expect to agree a deal with Atletico on the terms of the transfer.
Atletico are already moving towards finding a replacement for Felipe, and are closing in on signing Leicester City centre back Caglar Soyuncu, multiple Spanish media reported.
Soyuncu will be out of contract at the end of the season.
Wolves and Atletico had been close to reaching an agreement for the 33-year-old defender Felipe in December, in what would have been a package deal that included him and forward Matheus Cunha, both managed by Giuliano Bertolucci and Kia Joorabchian.
The clubs agreed only on a loan for 23-year-old striker Cunha at the time, but central defence remains a key area for Wolves as they look to pull clear of the relegation zone.
Atletico and Wolves resumed talks again over the weekend as the Spanish club works hard to try to find a solution for Felipe who will be out of contract at the end of the season, and is currently out of favour with manager Diego Simeone.
Eliminated from European football after finishing last in their Champions League group, Atletico have turned their attention to the January market as they seek to improve their financial situation.
Following the Cunha loan deal with Wolves, Atletico announced on Wednesday that forward Joao Felix would also be leaving in a loan to Chelsea until the end of the season.