James Henry stays at Wolves as talks start on Michael Jacobs deal

Jacobs' loan expires on January 3 and parent club Derby and Wolves officials spoke yesterday to resolve the winger's future. Derby head of football operations Chris Evans watched Jacobs' sparkling display in Wolves' 1-1 draw against Leyton Orient on Sunday, and head coach Kenny Jackett is keen to keep the player.

"It's certainly something that's being addressed," said Jackett. "I've picked him on a regular basis. He has a lot of talent and it looks like he's got a good future.

"We've been pleased with Michael and we'll see what we can do."

Jackett believes it's too early to say if Jacobs will sign permanently, however.

"That's really to be discussed with Kevin Thelwell (head of football development), Jez Moxey (chief executive) and Derby," he said.

"I really don't know Derby's opinion on him and their picture going into the January window with a new manager.

"They've gone second in the Championship so they'll have their own ideas."

Jackett missed out on Jacobs when Millwall couldn't afford to pay £400,000 for him 18 months ago and insists a fee hasn't been agreed.

"It hasn't come to that yet," he said. "Whether it's loans, permanent transfer or just going back to Derby and enjoying the experience –that's all something we'll be discussing."

Meanwhile, Henry has sealed a £250,000 permanent move to Wolves from Millwall.

"An agreement is now in place for us to sign James once the window re-opens tomorrow," confirmed Jackett. "He's done very well.

"Recently, he's been struggling after his groin injury, but he produces fantastic crosses and through balls which create chances.

"Players like that can be hard to come by. He now has to get himself 100 per cent right because he has the ability to be a really good player for Wolves."

As for the window, Jackett reiterated his desire to strengthen, with a striker topping his list.

"I don't think we're looking for a high number of players," he said.