Atletico Madrid and Wolverhampton Wanderers have reached an agreement for the transfer of Brazil forward Matheus Cunha for a fee of €40 million plus variables, sources have told ESPN.
Cunha, 23, joined Atletico from Hertha Berlin in 2021 but has failed to find regular first team football this season with Alvaro Morata, Joao Felix and Antoine Griezmann all preferred by manager Diego Simeone.
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Atletico could receive an additional €10m in variables, sources said, although €5m would go to Hertha.
Atletico and Wolves have also spent the last few days in talks for defender Felipe, 33, but the player's wage demands have complicated matters, sources said.
Earlier this month, ESPN reported that Atletico had put Cunha, Felipe, Joao Felix and Mario Hermoso on the market, looking to balance the books after their elimination from the Champions League.
Cunha has scored seven goals in 54 appearances for Atletico. His lack of minutes this season saw him miss out on a place in the Brazil squad for the Qatar World Cup.
Wolves, who are bottom of the Premier League table with 10 points from their first 15 games, will be hoping that the forward can score the goals needed to avoid relegation after appointing former Spain, Real Madrid and Sevilla coach Julen Lopetegui as manager.