Football Insidersays the German giants are eyeing the 16-year-old as one of the most promising talents in his age group.
The Wales U17 star has not signed a contract renewal at Wolves, which means that he can move on for a modest fee in the winter or summer.
He is eligible to sign pro terms when he turns 17, which is in December.
The club will be hoping they can convince him to stay.
However, Dortmund believe they can offer him a better path to the first team, which may be tempting for the teenager.