Traore has emerged as a top target for Tottenham in the final days of the transfer window and the club are keen to take him to north London.
They accelerated the talks to sign him this week and were hoping to structure a loan deal with a view to a permanent move.
But Wolves have immediately rejected the first offer of a loan deal that included a £5m loan fee from the north London club.
And it has been claimed that Wolves have made it clear that the Spaniard is not for sale in the final days of the transfer window.
Traore is still viewed as a major player by Wolves and believes he will play an important role under new manager Bruno Lage.
There were suggestions that Wolves were prepared to cash in on Traore if a club offered them a fee of £40m.
But it seems Wolves are in no mood to see the player leave before Tuesday’s transfer deadline.
It remains to be seen whether Tottenham are prepared to test Wolves’ resolve again before the end of the window.
