Bruno Lage has been in the market for a midfielder and the signing of 23-year-old Nunes would be seen as a huge coup for Wolves.
A fee of £38million has been agreed, with £4million in add-ons, and the midfielder is expected to sign a five-year deal.
The club hope Nunes will fly into England this evening, however a medical has not been scheduled for today and will likely take place tomorrow (Wednesday) if everything is finalised. All parties are currently working to complete the transfer.
West Ham boss David Moyes publicly said last week that the Hammers had an offer rejected for Nunes, while the box-to-box midfielder has been linked with Liverpool.
In February, after a Champions League game, Manchester City manager Pep Guardiola also described Nunes as one of the world's best players.
If Wolves retain their current stars, it would take their net spend to around £86million. However, Wolves will also pay the £12million owed to RB Leipzig for Hwang Hee-chan, after they announced they would sign him permanently halfway through his season on-loan.
As a result, that takes Wolves' current net spend to £98million once Nunes' transfer goes through.
Nunes will add a much-needed creative spark to Wolves' midfield, as the Molineux club now hope to wrap up the deal.
The midfielder played against Wolves in a pre-season friendly last month and impressed in the number eight role.