The Yorkshire giants have already enjoyed a productive summer, sealing deals for Brenden Aaronson, Rasmus Kristensen and Marc Roca after dramatically securing their Premier League status for another 12 months.
According to Football Insider, Leeds have made an approach for Traore, aware that the attacker is available for transfer.
The Spain international has just 12 months remaining on his contract at Molineux and has little interest in extending his stay with the West Midlands outfit.
While Wolves head coach Bruno Lage has previously talked up the ability of Traore, it did not stop the 26-year-old from moving on loan to Barcelona during the January window.
During his time at Camp Nou, Traore made eight starts and nine substitute appearances in all competitions, contributing four assists during that period.
However, while Traore was keen to wrap up a permanent move to his boyhood club who he had previously represented as a youngster, Barcelona were not prepared to take up the option of signing the pacey wideman for a fee in the region of £29m.
Wolves would have been happy to take that proposal, the fee involved significantly higher than what they will be able to recoup from elsewhere.
Furthermore, there was a scenario where Traore could have been used in a straight-swap deal involving Francisco Trincao, who spent last season on loan at Wolves.
Nevertheless, it now appears that such an arrangement is unlikely, with Leeds at the front of the queue for a player who is said to be valued at £18m.
Although Traore has attracted the attention of Tottenham Hotspur in the past, he may be tempted to reunite with Leeds' director of football, who he knows from his time at Middlesbrough.
While Neves may still pen a new contract, Lage will want to get a deal over the line for at least one of Joao Palhinha or Matheus Nunes, the Sporting Lisbon pair both being heavily linked with a transfer to the English side.
Wolves are also yet to agree fresh terms with veteran midfielder Joao Moutinho, an issue which leaves them at risk of being further limited in the centre of the pitch. body check tags ::