Matheus Cunha: Wolves working on new contract for star forward as well as deal for Reims centre-back Emmanuel Agbadou

Wolves are in talks with forward Matheus Cunha about a new deal after his impressive form.

Cunha has two-and-a-half years remaining on his contract at Molineux but tying him down to a longer deal would be a major boost for Wolves as they bid to avoid relegation from the Premier League.

The Brazilian, who has 10 goals in 18 Premier League games so far this season, has been linked with a January move to Arsenal.

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Arsenal manager Mikel Arteta admitted on Friday his team is open to January signings but his focus is on the players they currently have.

"If something is in the market that we can afford and believe can have an impact on the team, we have to be open to that possibility always," said Arteta.

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Cunha will miss the Premier League game with Nottingham Forest on Monday, live on Sky Sports, as well as Wolves' FA Cup third-round trip to Bristol City the following Saturday after being handed a two-game ban following an incident with a member of Ipswich's staff after full-time of their defeat to the Tractor Boys on December 14.

Cunha was also fined £80,000 after being charged by the FA for acting in an "improper manner".

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Wolves manager Vitor Pereira said in his press conference that Wolves need to learn how to play without Cunha for those two matches.

"We need to be ready to play with Cunha and without Cunha," said Pereira on Friday. "We have to play as a team. We have players with different skills, different qualities, but we'll be ready."

Wolves agree deal for Reims' Agbadou

Wolves have agreed a £16.6m (€20m) fee with Reims for Emmanuel Agbadou.

The Molineux club turned their attention to the 27-year-old Ivory Coast international after pursuing Lens' Kevin Danso.

Sky Sports News has previously reported that Wolves could sign more than one centre-back in this window.

As well as working on a new deal for Cunha, Wolves are also aware of interest from Saudi Arabian club Al Shabab in midfielder Mario Lemina but there has been no approach.

Pereira: Wolves must be clinical in market

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Wolves head coach Pereira admits his squad is short and that the club must be clinical in the January transfer market.

Pereira has guided the Molineux club to two wins and a draw since taking over from Gary O'Neil, bringing them out of the relegation zone.

Asked by Sky Sports' Lynsey Hooper if signings are needed this month, Pereira said: "When you come to a club and you want to connect the players and you want to give them confidence and good energy, if you start to speak about other players, about what you need, it means that this is not the right sign-up to give them.

"If I trust them, if I want to create something strong with them, I need to give them confidence.

"Of course, if you look, it's a short squad. It means that we don't have a lot of solutions in some positions. But it's a chance to start to find the talents in the academy and this is good because I love to do it.

"In the market, we must be clinical. Financially, we don't have the power to change a lot of things but we need to go one or two players."

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