Manchester City have been given encouragement that Wolverhampton Wanderers will listen to a second offer for Matheus Nunes but will walk away from a deal if there is no compromise over their valuation of the Portugal international, sources have told ESPN.
City saw a £47 million ($59m) offer turned down on Wednesday with information coming back that it fell way short of Wolves' valuation of the midfielder.
Wolves, according to sources, do not want Nunes to leave but there is an acceptance that a large bid would have to be considered, particularly because the 24-year-old is keen on the move.
Sources have told ESPN they are expecting to receive a second offer, although City are adamant they will not overpay and will abandon talks if Wolves' do not reduce their demands.
City have backed away from a deal for West Ham midfielder Lucas Paquetá while the Brazil midfielder remains the subject of a betting investigation but other targets are being monitored.
City, who are close to securing the signing of Jérémy Doku after agreeing a £55.5m fee with Rennes, are also looking to add another midfielder to the squad to compensate for the loss of Kevin de Bruyne.
De Bruyne could be out until February after undergoing surgery on a hamstring injury.
Signing Doku is set to take City's summer spend past £150m after also bringing in Mateo Kovacic from Chelsea and Josko Gvardiol from RB Leipzig, but the club are still in a position to bid for Nunes with risking breaching Financial Fair Play rules after raising more than £80m from departures during the window.
City have raised more than £50m from academy departures, including close to £9m generated from Romeo Lavia's move from Southampton to Chelsea, and another £30m from Riyad Mahrez's move to Al Ahli.
Meanwhile, Aymeric Laporte has completed his move to Saudi Pro League side Al Nassr. City will receive a £23.5m fee for the Spain international defender, taking their total incomings to more than £100m.
The 29-year-old leaves the Etihad having made 180 appearances and winning the Premier League five times since his arrival from Athletic Bilbao in January 2018.