Wolves' Bakary Sako transfer in the balance

Wolves were today locked in negotiations with Nottingham Forest over the future of Bakary Sako.

moreForest want to take the French winger on a 93-day loan with a view to a permanent move when the transfer window re-opens in January.

Wolves are sticking to their guns and say Forest's advances haven't reached their valuation, which would be in excess of £4m, for a loan plus a permanent deal.

But sources say both parties are now closer to agreement than they were when Wolves rejected several offers from Forest, culminating in a bid of £3.5m before the window closed on September 2.

However, there are still issues to be sorted out before an agreement can be reached.

In a statement Wolves said: "Forest have renewed their interest, but the situation remains unchanged. Bakary is an important player and his value reflects that.

"Wolves are not encouraging the interest and there is no certainty of a deal."

When the transfer window shut, both Sako and Wolves said he would remain at Molineux for the rest of the season.

But unlike the Premier League, where clubs are effectively ruled out of doing business outside the window, Football League clubs can still conduct deals through the loan system.

Sako has remained professional and is happy at Molineux, where he earns around £25,000-a-week and is the club's six-goal top scorer this season. But Wolves are mindful that in League One, they can't offer him the platform he wants to perform on and have kept the 25-year-old informed.

Wolves became aware of Forest's renewed push for Sako at the start of this week. The club had already arranged to sign Millwall right-winger James Henry, and boss Kenny Jackett insisted he was looking forward to having both widemen in the team together.