The 23-year-old has impressed hugely this term and shone in last weekend’s 2-1 defeat to Tottenham, scoring a screamer.
A report in a national newspaper after the game claimed that Spurs’ stars – blown away by the Spaniard – urged chief Jose Mourinho to sign him.
But Nuno is calm and said: “He has a contract with the club.
“He’s happy here, puts a lot of energy, dedication, into things and wants to improve.
“He’s happy. Things that happen outside, we can’t control.”
Traore endured a difficult first season in gold and black after being signed for £18million in the summer of 2018, from Middlesbrough.
The speedster has turned things around drastically, though, and Nuno said: “The talent is there. Last season was not so good, but players have ups and downs.
“We give them the confidence to go out there and express themselves.”
Having been given some rough treatment by Spurs, Traore actually suffered a dislocated shoulder in the game.
But having had it popped back in swiftly, he is set to be involved against Norwich.
And Nuno praised Traore for not losing his temper, with a whopping 24 different players booked for challenges on him this term.
“This is the way to play football,” said Nuno.
“You cannot take justice into your own hands. You have the judge on the pitch and that is the referee.
“This is the way we work and how we tell our players to be – trust the referee. We tell all our players, and we don’t dive. It’s as simple as that.”
Nuno, meanwhile, was happy to see speculation about Arsenal being interested in him put to an end as they appointed former player Mikel Arteta.
“It’s something that you can’t control. My mission is Wolves,” he added.