The Blues youngster has spent most of the last two seasons on loan at Molineux, playing in both defence and midfield.
Wolves boss Mick McCarthy is a confirmed admirer of the 22-year-old and owner Steve Morgan is ready to finance a move.
"If Chelsea say he's available then we would have an interest. Until they clarify what their plans for Michael are, it's very difficult to comment," he said.
"We think the world of Michael at this club - he's a good player, he knows the set-up and he's a popular lad with the squad.
"I think Michael's future depends on what home-grown players Chelsea bring in because they have a balance to strike.
"It's not like going to Tesco and taking tins off the supermarket shelf - as we all know, getting the right players is very difficult.
"The biggest issue is where Chelsea see Michael's future."