Alan Gow is holding talks with Wolves after Rangers confirmed a six-figure fee has been agreed for the winger.
Skysports.com revealed on Sunday that the Scot was closing on a move to Molineux after spending the first half of the season on loan at Blackpool.
Though Blackpool had been keen on a permanent deal, Gow could finalise a switch to promotion hopefuls Wolves later this week.
Rangers boss Walter Smith expects the 26-year-old to link up with Wolves and believes it will be a good move for Gow.
"The clubs have agreed a fee for the player and Alan and his representatives have gone to speak to Wolves today," Smith told the club's official website.
"As long as they reach agreement, the move will be finalised in due course but they have to talk first.
"Mick McCarthy has done a terrific job down there. Last season was disappointing for them, but they've settled down this year.
"After missing out on a promotion place, they're doing well and look to be the favourites to go up to the Premiership as they've got a fair gap at the top of the league now.
"I don't want to pre-empt anything, but it certainly looks as though they'll get promotion and Alan has an opportunity to join a club on the up. It would be a good move for him."