The 24-year-old was instrumental in helping the French side beat Paris Saint-Germain to the Ligue 1 title last season with an inspired campaign in the middle of the park.
He has turned the heads of several clubs following that sensational season, with Liverpool said to be among those interested in signing him.
But The Telegraph says Bruno Lage's Wolves are now the frontrunners to acquire Sanches in the January window.
Wanderers were keen to bring the Portuguese international in before striker Hwang Hee-chan took over as the club's main priority in the summer.
The Premier League side were also put off by the fact that Sanches sustained a knee injury while they were closely monitoring him.
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