Wolves are closing in on the loan signing of Atletico Madrid's Brazil forward Matheus Cunha.

The Premier League club, who have been talking to Cunha for several weeks, have reached a verbal agreement.

A loan deal for the 23-year-old would include an obligation to buy at the end of the season for a fee that could rise to 40m euros (£35m).

It is understood Atletico were open to letting Cunha leave after Champions League group-stage elimination.

The forward has eight caps for Brazil but has only played once for Atletico in the league this season.

New manager Julen Lopetegui wanted striking reinforcements for a squad that has only scored eight times in the Premier League this season.