Reports surfaced last night that the 26-year-old Austrian international is a surprise target for Nuno Espirito Santo's team and the Express & Star understands that Wolves are working on a deal to sign him for the rest of the season.
Stoke paid £5.5m for Bauer a year ago but he has fallen out of favour at the bet365 Stadium and hasn't played since September.
Wolves need cover at right wing-back with Matt Doherty, Jonny Castro Otto and the left-sided Ruben Vinagre their only senior wing-backs.
Bauer played 15 times in the Premier League for the Potters last season after joining from Rubin Kazan and began this season with three league appearances in August under Gary Rowett in the Championship.
However Rowett then accused Bauer of undermining Stoke's team spirit by posting on social media shortly before a game against Blackburn in September.
Bauer tweeted a photo of himself relaxing in a pool at the training ground after working on his own and Rowett said: "I think all that does is turn fans against the manager, against the club. It’s a weak thing to do and not something I particularly like."
Bauer played a few days later against Nottingham Forest but has not featured since.
Meanwhile the Tammy Abraham transfer saga has finally been put to bed, with Wolves ending their interest and moving on to other targets.
Club bosses had hoped to persuade the 21-year-old Villa loanee to join but a combination of reluctance on the player's part and a lack of clarity from FIFA over whether they'd ratify the move has seen it peter out.