The Telegraph says Wolves made a failed attempt for the Portugal international last summer and remain keen.
A deal was close before Sanches suffered an injury, however now that he has recovered and is back in action, Wolves are reviving their interest.
Along with Sanches, Wolves also wish to sign permanently on-loan striker Hee-Chan Hwang.
Wolves intend to buy the South Korea international outright from RB Leipzig in January.
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