The 22-year-old left back has spent the past four years tied to the Premier League club.
According to Football Insider, Wolves have reached an agreement with Sporting for the player's transfer.
The English club are set to receive a fee of approximately £8.6 million for Vinagre's signature.
Benfica were also interested in the defender, who spent last season on loan at Olympiakos in Greece and then Famalicao in Portugal.
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