Flamengo have told Wolves to up their offer for Joao Gomes.
The 21-year-old is keen to join Wolves but Lyon have topped their £15 million offer by £2.5m, says the Daily Mail.
Gomes was already in London with his agent at the time of Lyon's counter offer, which is threatening to derail the transfer.
Wolves are expected to try again for Gomes next week.
The midfielder was part of the Flamengo side that won the Copa Libertadores last season and was also named in the Brazilian Serie A team of the season.