Nuno Espirito Santo has predicted another bumper year for Wolves as he eyes January reinforcements.

They go to Watford on New Year's Day sitting seventh in the Premier League after Sunday's narrow 1-0 defeat at Liverpool.

Wolves are just five points behind the top four and into the last 32 of the Europa League, where they face LaLiga strugglers Espanyol.

Nuno wants to add to the squad and believes – with the right players – the club can continue to progress in 2020.

"I truly believe there is a lot of space to improve because the way we do things," he said.

"We have a very small squad, the players involved are basically the same as last season.

"So if we can improve our performance at the same time the transfer window is open and try to bring in things the team needs – different characteristics – there is a lot of space to improve."

Raul Jimenez is likely to return after starting on the bench on Sunday while Matt Doherty and Adama Traore are also due to start.

Willy Boly (fractured leg) and Morgan Gibbs-White (back) remain sidelined.

Wolves face a resurgent Watford who have won seven points from Nigel Pearson's first four games, the Hornets had earned nine from their previous 14 matches.

It has left Nuno wary ahead of the Vicarage Road trip with Watford needing victory to close the three-point gap to safety.

"Now we start thinking about Watford, analysing their games and it is evident they are a good team and it will be very tough," he said.

"There was a reaction and things are improving. Every game in the Premier League, especially in this schedule, is very tough.

"We started the season with a tough game. We have to rest, recover well and prepare ourselves to compete in the best way we can."