The Catalan giants are looking to sign the Spaniard before the transfer window closes and the move is rapidly gathering pace.
Barcelona are reportedly negotiating a loan deal with an option to buy Traore for around £29million.
This morning the deal was some way off being completed but talks have advanced quickly and the 26-year-old is now due to have his medical in Spain on Friday.
With Traore only having 18 months left on his Wolves contract, an option and not an obligation to buy him at the end of any proposed loan is an interesting move from Wolves.
It could mean he returns from loan in the summer with only a year left on his deal, meaning Wolves may receive less money for him or risk losing him on a free.
However, it is thought that a move to Barcelona would be a dream return for a player who came through their academy before moving to Villa in 2015 and that Traore would be keen on the move.
A move abroad – if it does materialise – is also thought to be better for Wolves, rather than selling him to a Premier League rival in the hunt for a European spot.
Tottenham Hotspur – who are only two points ahead of Wolves in the table – had a £15million bid rejected earlier this month and were chasing Traore’s signature, but that deal is now believed to have fallen through.
It is also understood that Traore was not keen to play right-wing-back, where Spurs boss Antonio Conte was planning to deploy him.
Traore had been in talks over a new contract for more than a year and Wolves offered him new and improved terms in September after a summer move from Spurs fell through.
Former boss Nuno Espirito Santo even said towards the end of his reign that he expected Traore to sign fresh terms.
But it is understood he wanted to be one of the highest earners at the football club and any prospect of him signing a new contract is now unlikely.
Head coach Bruno Lage is eager to keep Traore, but the player has struggled to become a regular in the starting XI this season.