The United States international is highly-rated at Molineux and arrived at the club’s academy in 2017 from West Ham.
He made his senior Wolves debut in December 2019, coming off the bench against Besiktas in the Europa League, before signing a new contract with the club in January 2020.
Now, reports from The Telegraph suggest the 20-year-old has turned down a new contract.
The Express & Star understands those reports to be accurate, while reported interest from both Wolfsburg and Anderlecht is understood to be genuine.
It is believed he could be available for around £6million, with only one year left on his contract.
Wolves do, however, have the option of an extra year in their favour.
Otasowie had to wait until December 2020 for his Premier League debut, when he came off the bench at half-time at home to Chelsea and helped his side to a 2-1 victory.
The midfielder impressed and featured in a handful of games that followed, but found his opportunities few and far between under former manager Nuno Espirito Santo.
In the end he only featured six times in the Premier League last season as Wolves slumped to a 13th-place finish.
Under Bruno Lage in pre-season, Otasowie was surprisingly overlooked to start the first friendly against Crewe – with several players yet to return following the European Championships.
Fellow academy midfielder Taylor Perry was chosen ahead of him, while Otasowie came on at half-time. The youngster has since been missing with a hamstring issue but he is understood to be nearing a return to fitness.