Wolves manager Mick McCarthy has revealed the club are in talks with Matt Jarvis about signing a new deal.
The 22-year-old winger's contract is due to expire in the summer.
But the Championship leaders have an option for a one-year extension which they will be taking up with a view to a longer deal.
McCarthy said: "We're in negotiations and his option will be taken up that's for sure. Jarvo loves it here and wants to get to the Premier League."
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