The Molineux outfit are selling Matheus Nunes to Manchester City and are looking to do business before the transfer window closes.
Wolves boss Gary O’Neil wants to bring in Reed and the club are trying to deliver for him.
They have gone to Fulham with an offer for the midfielder, but it is not enough for the Cottagers and has been turned down.
Wolves are not expected to give up though and will return with a fresh proposal.
With the clock ticking down on the transfer window, Wolves will need to act quickly if they are to get a deal for Reed over the line.
Reed has featured in all three of Fulham’s Premier League games this season and provided an assist against Arsenal.
The midfielder has now entered the final year of his contract at Craven Cottage.
