Mick McCarthy backed with £3m transfer funds

Wolves boss Mick McCarthy has been handed a £3m warchest in January – providing he can ride the current storm.

McCarthy wants to rival Albion in the running for Manchester City defender Nedum Onuoha. And he is weighing up a move for one of Arsenal's two young midfielders made available on loan – Emmanuel Frimpong and Francis Coquelin.

McCarthy watched all three at the Emirates Stadium last Tuesday, when the Gunners lost 1-0 in the Carling Cup to Manchester City.

The Wolves boss had initially been told he could only sign players on loan and he made enquiries for Liverpool midfielder Jonjo Shelvey – who has returned to Anfield as cover for the injured Lucas after cutting short a temporary spell at Blackpool – and Leeds striker Ross McCormack.

But chief executive Jez Moxey hinted recently that some money had been held back in the summer and could be available in January.

Despite needing to win yesterday's game against Sunderland – which they did, 2-1 – McCarthy was advised the purse strings have been relaxed a little at a board meeting last Wednesday, and he now has some cash to spend in the January transfer window.

City want around £4m for Onuoha, who has been courted by Bolton as well as the Baggies. But Wolves won't pay anywhere that much for the versatile centre-back, who can also play right-back and left- back and had 31 games on loan for Sunderland last season. They are hoping they will come down on the price.

McCarthy is also eyeing Wigan midfielder Mohamed Diame.