Wolves 'baffled' by Premier League rival's claim as Gary O'Neil ready to sell £35m man to 'fund Arsenal raid'

Wolves saw any hope of silverware disappear in cruel fashion with Saturday's 3-2 defeat at home to Coventry City knocking them out of the FA Cup at the quarter-final stage. Gary O'Neil's side thought they'd won it with late goals from Rayan Ait-Nouri and Hugo Bueno but conceded twice in added-time to lose 3-2.

The March international break will allow Wolves to reflect on the defeat before all focus turns to ensuring a top-half Premier League finish, starting with a massive trip to Aston Villa next Saturday. In the meantime, BirminghamWorld has rounded up some of the latest stories to come out of Molineux.

Wolves 'baffled' with Forest

Figures at Wolves are said to feel 'baffled and mildly annoyed' with Nottingham Forest after being dragged into their Premier League points deduction drama. The Athletic reports that Forest alleged Wolves were forced to sell Ruben Neves last summer in order to avoid a breach of profitability and sustainability rules (PSR).

Forest were deducted four points by the Premier League earlier this week but cited their delayed sale of Brennan Johnson as part of their defence. They rejected a £30m bid from Brentford early last summer before selling to Tottenham for £47.5m, although it was too late to enter their accounts for the previous season.

The City Ground side cited Wolves' sale of Neves as a similar incident but officials inside Molineux insist the Portuguese midfielder's move to Al-Hilal had nothing to do with avoiding a PSR breach. The report adds that while the Midlands club have had to be careful, there has never been serious concern of a potential breach.

Silva transfer decision

Wolves are reportedly prepared to cut their losses on record-signing Fabio Silva in order to provide funds for a new striker this summer. TEAMtalk reports that money made from the forward's exit will go some way towards hopefully signing Arsenal's Eddie Nketiah.

Silva cost Wolves £35m back in 2020 but has been unable to break into the first-team and joined Rangers on loan in January, his third such stint after spells with Anderlecht and PSV Eindhoven. The 21-year-old has impressed at Ibrox and those in charge at Molineux are hopeful of getting around £15m, which would be a significant loss.

Nonetheless, O'Neil is thought to have sanctioned Silva's exit as he eyes a new striker, with Nketiah on their radar. The 24-year-old is expected to leave this summer after being told by the Gunners he is free to find more regular football elsewhere.