Mick McCarthy will send Michael Kightly into reserve action on Tuesday after seeing the winger miss out on a loan move to Nottingham Forest.
Wolves were prepared to let the former England U21 international link up with Forest as he works his way back to full match fitness.
Following an injury-ravaged period in his career, Kightly is determined to get vital minutes under his belt and recapture his best form.
A spell at the City Ground would have allowed him to take in regular football, with Forest in the market for creative talent.
Steve McClaren was keen to strike a deal and Wolves were prepared to let him go but Forest failed to piece together a suitable financial package and talks broke down.
McClaren has now left his post with the Championship club and McCarthy, who will field Kightly in a second string fixture against AFC Telford in midweek, admits he has been left bemused by the whole situation.
He told the Express and Star: "There was interest - I'd spoken to Steve McClaren about Michael Kightly but I've no idea what happened because I was open to it and so was Kightly."
Reports have suggested that Forest were also keen on Adam Hammill, but McCarthy insists a deal for the 23-year-old was never discussed.
He added: "No. They wanted a winger and we've got Kightly, but Adam was never in line to go."