Patrick Cutrone has returned to training with Wolves after talks about his move to Fiorentina stalled, Sky Sports News understands.
The Serie A club had offered a loan deal with a view to permanent move and the Italian was keen to discuss terms.
Talks, however, have reached an impasse and Cutrone is now back with the first-team squad at Wolves.
Cutrone held talks about his future with head coach Nuno Espirito Santo on Friday and was subsequently left out of the side`s FA Cup third-round match with Manchester United.
It appears Cutrone and Wolves would welcome a move back to Italy but it will either take fresh movement in the Fiorentina deal - or another club - to come in to make that happen.
Cutrone, who turned 22 last week, has scored three goals in 24 appearances in his first season at Molineux but the majority of those have come as a substitute.
Meanwhile, Wolves are close to completing the signing of Dutch teenager Nigel Lonwijk from PSV for around £180k.
The 17-year old is in the West Midlands and has agreed terms with Wolves, who are waiting for international clearance to register him.
The Netherlands youth international will go into Wolves U18 squad.
How to follow the January transfer window with Sky Sports
Sky Sports will bring you the very latest news from the January transfer market with the return of three shows.
Start your day with Good Morning Transfers at 9am as our team of reporters bring you the latest news and insight. Transfer Talk then follows at midday delivering analysis of the biggest stories. Then join us at 7pm for the definitive round-up of the day`s news with The Transfer Show.
Meanwhile, the Transfer Talk podcast will also be back at the turn of the year with more expert analysis from here and across the continent.
And as well as tuning into Sky Sports News, don`t miss a thing with our dedicated Transfer Centre blog.