The 27-year-old is currently a free agent after his contract at Lyon came to an end - and he has been linked with a number of clubs in Europe.
Fulham and Valencia are two clubs that have been linked with the Belgian, who has played 35 times for his country - however Wolves, who are in the market for a defender, are said to have made an approach.
It is understood Wolves have offered the former Manchester City youth product a three year deal - as they look to secure a deal before the window closes later this week.
Denayer didn't make a first team appearance at City - but has played in England before as he spent time at Sunderland on loan following another loan spell for Celtic.
He eventually left City in 2018 to join Lyon - where he has made over 100 appearances.