Wolverhampton Wanderers forward Jon Dadi Bodvarsson is reportedly closing in on a permanent move to Championship rivals Reading.

The 25-year-old joined the Midlands outfit from Kaiserslautern last summer on a three-year deal and, although quickly becoming a fan favourite for his high work rate, he could only manage to find the net three times in 42 league appearances last season.

Earlier this week it emerged that new Wolves boss Nuno Espirito Santo has deemed the Iceland international surplus to requirements as he reshapes his squad to mount a promotion challenge next term.

Ipswich Town emerged as an early contender for Bodvarsson's signature, with a proposed loan deal on the cards, but according to the Express & Star, Jaap Stam has now made an offer to bring him to Reading.

The newspaper says that Wolves were keen to recoup the £1m that they paid for him last year but the level of the fee being discussed between the two clubs is unknown.

Wolves are believed to be in the market for at least one new striker this summer and have been linked with moves for Porto's Vincent Aboubakar and former forward Benik Afobe, who left Molineux for Bournemouth 18 months ago.