It's believed Wolves will break their transfer record and spend £15million on the 20-year-old Portuguese international.
Terms now have to be agreed with the player but if all goes well he could become a Wolves player in the coming days.
If it goes through the move will represent a remarkable coup for the club. Neves has been scouted by Champions League clubs across Europe and was recently linked with Liverpool and Chelsea.
The £15m fee would take Wolves spending on transfer fees alone under Fosun to an estimated £47m in the past year.
They've already broken their transfer record twice in that time, signing Ivan Cavaleiro for £7m and then Helder Costa for £13m.
In his first press conference, Jeff Shi – now executive chairman – stated that money was ‘not a problem’ and added: “We have said we will invest between £20 and £30m over the next two years. That is a necessity and if necessary we can put more money in.
“The most important thing is getting the right players in the right position to help the club. I do not think money is a problem for us.”
Neves' agent Jorge Mendes, as he did with Cavaleiro and Costa, has brokered the deal. Talks took place on Saturday to thrash out a deal after Wolves' initial enquiry was made at the back end of last week.
It's believed that new boss Nuno Espirito Santo has also played a key role in the move. He managed Neves in his one season in charge of Porto last season.
Neves would become the fourth Portuguese player at the club alongside Costa, Cavaleiro and new defender Roderick Miranda.
The deep-lying midfielder recently featured for Portugal at the European Under-21 Championship. He came through the youth ranks at Porto and has played 92 times, scoring four goals, since breaking into the first team three years ago.