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Wolves remain in talks with Arsenal over goalkeeper Aaron Ramsdale.

The England international could cost Wolves about £20m, with an initial loan offer being made last week.

There is a desire from parties to get the deal done but it is seen as a complicated and expensive one, especially given Wolves' financial restrictions.

The Gunners would prefer a straight sale rather than an initial loan for the 26-year-old, who has lost his place in Mikel Arteta's team to David Raya.

Ramsdale, who cost Arsenal l £24m when they signed him from Sheffield United in 2021, has two years left on his deal at Emirates Stadium but wants first-team football.

On Sunday, Wolves boss Gary O'Neil warned that the club needed to be satisfied with their transfer business having sold Pedro Neto to Chelsea and Max Kilman to West Ham for nearly £100m.

Wolves are not expected to spend heavily in the final week of the window but Sunday's 6-2 home defeat by Chelsea acted as a wake-up call.

O'Neil started just one summer signing - Jorgen Strand Larsen - in the loss.

He said: "Once the window shuts it doesn't open for a good few months. When it shuts we need to be comfortable with where we are.

"There's a lot of work for myself and I need to get more out of the group we have. Then there's an understanding the Premier League is tough and if you sell good players it makes you weaker.

"We'll see if it's a break-even window by the time it shuts next Friday. We have raised some good funds and hopefully we can use them well in the next few days."

Wolves were also keen on Burnley winger Luca Koleosho but hopes of agreeing a deal with the Clarets are fading after a £20m offer was rejected last week.