Wolverhampton Wanderers could be set to miss out on Joao Cancelo, according to reports in the Italy.

Italian media outlet Calciomercato reports that Cancelo wishes to play Champions League football rather than move to newly-promoted Wolves.

Nuno Espirito Santo's team had been in pole position to land the attack-minded full-back to compete with Matt Doherty at the back but they have just received a blow.

Super-agent Jorge Mendes, who was responsible for bringing the likes of Ruben Neves and Diogo Jota to Molineux, was personally handling a €40m potential switch from Valencia to Wolves.

Cancelo spent last season on loan at Inter Milan, where he impressed thoroughly, and the Italian giants want to snap him up permanently.

But they have been put off by the asking price and given their Financial Fair Play restrictions, they must wait before they can snap him up, alerting Serie A champions Juventus to his availability.

Manchester United could also make a move for Cancelo, despite signing Diogo Dalot.

Wolves might need to look elsewhere now for their new right-back after it appears that the 24-year-old favours a move to a Champions League side.

However, Wolves are not out of the race yet; they have merely been put on hold while he considers other options.

The Verdict

This news will come as a blow to Wolves fans because Cancelo was the perfect man for Nuno's system.

The Portugal international is an attacking full-back who would thrive in the wing-back role that Doherty has occupied so well for Wolves in the Championship.

There are other options out there and Wolves will need to consider these while waiting for his answer.

Wolves fans - What do you make of this news? Let us know below...