Fulham have agreed a £15million fee for Sporting Lisbon midfielder Joao Palhinha, 26, who is also a target for Wolves.
The Cottagers, managed by Palhinha's fellow countryman Marco Silva, will be looking to avoid a third-straight relegation back to the Championship this season.
The signing of Palhinha plugs a gap in an obvious area of weakness for Fulham in central midfield, with the club having struggled there in particular on their last stay in the Premier League.
It was also reported, however, that Wolves remain interested in the player and it is up to Palhinha to decide his future.