Wolves boss Mick McCarthy is keen to sign James McFadden after the striker's successful trial at Molineux.
The former Birmingham forward missed most of last season after suffering cruciate ligament damage in September.
He then left the relegated Premier League side after a two-year option on his contract was not taken up by City.
McCarthy said: "I hope there are some developments with James. He has looked fine. I want to sign him but I don't know how far we are down that road."
Meanwhile, Wolves captain Roger Johnson, who played with McFadden at Birmingham, is set to return for Saturday's trip to Liverpool.
He injured his calf during last weekend's 3-0 home defeat by QPR and missed the 5-0 thrashing of Millwall in the Carling Cup in midweek.
But McCarthy said: "He will be alright for Saturday."