Sunderland are reportedly interested in the former Birmingham striker, who was released in the summer after suffering a cruciate knee ligament injury.
But Wolves boss Mick McCarthy was impressed by the Scotland international during a recent trial and wants to complete the signing.
McFadden is no longer training with the Molineux club and will consider his options before making a decision on his future.
McCarthy said: "We made him an offer, but I understand he has got a few offers."
Source: Team Talk
Source: Team Talk