Wolves have initiated negotiations to part ways with manager Julen Lopetegui, 56, after taking over when the club were under threat of relegation in November and has guided them all the way back up into 13th position.

But the Spaniard has become frustrated at being restricted in transfers due to Wolves’ Financial Fair Play rules, prompting speculation he could leave Molineux before the season commences.

Lopetegui’s future is in doubt

Lopetegui has led Wolves to 13th place in the Premier League this season and his future at Molineux remains uncertain. Joining as manager in November when Wolves were bottom, Lopetegui masterminded an incredible turnaround that ensured top-flight survival and secured survival as an option for him and the club.

He has become frustrated by Wolves’ transfer window activity; the club have sold experienced players like Ruben Neves, Joao Moutinho, Conor Coady and Raul Jimenez without replacing them; instead only two signings have been made: Matt Doherty and backup goalkeeper Tom King have come in so far.

Wolves’ hierarchy have prepared contingency plans in case Lopetegui decides to leave, with Gary O’Neil ready as an alternative option if necessary. O’Neil left Bournemouth last June having helped prevent their relegation, and Wolves feel that O’Neil may make an ideal replacement at Wolves.

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O’Neil is the preferred candidate

Wolves will begin discussions with Lopetegui this week as the Midland club attempts to negotiate an exit settlement from Molineux. After being dismissed by Sevilla last weekend and still having two years remaining on his contract, Lopetegui is representing himself in these talks and receiving backing from Jorge Mendes, an influential associate of Wolves ownership who represents several players such as Ruben Neves, Nathan Collins, and Raul Jimenez among others.

Even after Chairman Jeff Shi issued an open letter to fans, uncertainties surround Lopetegui’s future at Wolves. Fosun are unlikely to sell, yet must balance their books to meet FFP rules.

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Wolves have amassed approximately PS91million from player sales this summer but will not be allowed to spend as much due to Financial Fair Play rules in order to remain compliant. That has left Lopetegui frustrated, since more funds should have been dedicated towards rebuilding his squad after last season’s 13th place finish.

Lopetegui’s contract expires at the end of the season

Wolves appointed 56-year-old McGregor in November last year when they were bottom of the Premier League and guided them up to 13th spot, but have been restricted in their transfer activity due to Financial Fair Play (FFP) rules this summer, as well as being prevented from extending contracts of players such as Ruben Neves, Joao Moutinho and Matt Doherty who have come off contract early.

Though Lopetegui was widely speculated to leave Molineux this afternoon, reports indicate he will still take training as scheduled this afternoon and that discussions have taken place between Lopetegui and Molineux’s owners for any potential financial settlement should he opt out.

Wolves are ready to speak to O’Neil

Wolves management are understood to have prepared contingency plans should Lopetegui decide to leave just days before their season opener at Manchester United, according to reports in The Mirror. According to these accounts, informal talks were held with former Bournemouth boss O’Neil over his potential appointment at Molineux.

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While initially it appeared that Spaniard Josep Gomes remained committed to Wolves, it has become apparent that he has his doubts. According to reports, former Porto, Sevilla, and Spain manager feels limited by Wolves’ Financial Fitness and Progression rules in making investments into their squad at an optimal level.

Wolves are expected to sell several players this summer to increase their transfer kitty as part of their plan to comply with Premier League regulations and avoid sanctions. It is thought that a compromise settlement for Lopetegui may see him leave his club, having joined only in November. Training resumes for Wolves later Tuesday afternoon before their inaugural home game of the season against Manchester United is played Monday.