Chelsea and Arsenal have passed on imminent Wolves signing Matheus Cunha.

Chelsea and Arsenal were approached but neither made a move as the two clubs focus on other targets says the London Evening Standard.

Wolves, who have struggled for goals all season, are now expected to complete a move for the 23-year-old Atletico Madrid striker, with reports suggesting the structure will see him join on an initial loan deal before a permanent move worth around £35m in the summer.

New manager Julen Lopetegui confirmed his interest in Cunha after winning his first game in charge against Gillingham in the Carabao Cup on Tuesday.

"I can't confirm anything," he said.

“We are interested in him [Cunha] and it's possible you know more than me.

"I don't have the updates, the official news, so I have to be professional. Of course he is a player that we want but we don't have updates. When I have updates I am going to talk about him."