Ghana and Arsenal midfielder Emmanuel Frimpong is set to join Wolves on loan until the end of the season.
Talks between the two Premier League clubs are ongoing and a deal is expected to be concluded by Monday.
The 19-year-old has made 14 appearances this season - starting three Premier League matches, three Carling Cup ties and three Champions League games.
He will bolster a Wolves midfield that has lost Jamie O'Hara for a month after undergoing surgery on a double hernia.
Wolves drew 1-1 at Arsenal on Tuesday and sit two points clear of the relegation zone in 17th.
The fifth-place Gunners appear well-stocked in midfield, with Jack Wilshere - who came through the club's youth system with Frimpong - and Abou Diaby working their way back to fitness.
Meanwhile, it is understood the deal to take former Arsenal striker Thierry Henry back to Emirates Stadium in a two-month loan deal from New York Red Bulls is likely to be finalised after Saturday's match against QPR or on Sunday.