Wolves boss Mick McCarthy wants to sign striker James McFadden after a successful trial period at the club.
McFadden parted company with Birmingham at the end of last season after an option on his contract was not taken up by the Carling Cup holders.
McCarthy said: "I hope there are some developments with James McFadden. He has looked fine this week. I want to sign him but I don't know how far we are down that road."
The Scottish international is keen to resurrect his career after suffering a cruciate knee ligament injury 13 months ago.
He joined Birmingham in January 2008 and made 88 appearances, scoring 14 goals.
Wolves skipper Roger Johnson, who played alongside McFadden at Birmingham, is poised to return to action in Saturday's clash with Liverpool at Anfield.
The central defender missed the 5-0 demolition of Millwall in the Carling Cup on Tuesday with a sore calf.
But he has recovered from the injury suffered in the 3-0 home Barclays Premier League league reversal at the hands of QPR at the weekend and resumed training today.
McCarthy is also hoping striker Steven Fletcher will be available after a recent groin problem, saying: "Fletch told me he feels great and he may well be involved on Saturday.
"I'm just conscious he got to that stage last week, and trained really well on Thursday and then hurt it again on the Friday. He's really optimistic so we will see."