Gary O'Neil in advanced talks to return to Wolves

Both parties are creeping closer to agreeing personal terms, but a deal to bring him back to Wolves is not yet done.

The Wolves hierarchy are also discussing other options internally, including Rob Edwards, Brendan Rodgers and Michael Carrick, but O'Neil is now in direct conversation with them over potentially making a shock return to Molineux.

Wolves are also keen to speak to former Manchester United boss Erik ten Hag and they have discussed him internally.

The 55-year-old, who was sacked by United in October last year, took over at German side Bayer Leverkusen this season but lasted just three competitive games in charge.

However, Wolves are not expected to make an imminent decision on the new boss as they continue talks with O'Neil.

Under-21s head coach James Collins and under-18s head coach Richard Walker have taken training today (Monday) as the club prepare for Saturday's trip to face Chelsea.

O'Neil left the club on December 15 last year, the day after Wolves lost 2-1 to Ipswich Town with a late goal at Molineux.

Wolves were struggling in 19th, having lost 11 of their 16 matches and picking up just nine points, before Pereira came in and helped them survive relegation.

But a winless run of 10 games this season, where Wolves have got just two points, saw the end of Pereira's time at the club despite being rewarded with a new three-year contract in September.

Wolves may now return to O'Neil in a bid to save their Premier League status as talks continue.

It is understood that former Wolves striker Robbie Keane would be interested in the job, but that it is unlikely to be explored further by the club at this stage.

Keane is currently manager of Hungarian side Ferencvarosi and is well-liked among Wolves fans for his goalscoring ability in the late 1990's.