Sporting CP will reportedly make another attempt to sign Al-Musrati, as they prepare for life after Joao Palhinha.
The Portuguese outfit are bracing themselves to lose the 26-year-old enforcer.
Wolves had looked all set to sign the star, but in recent days Fulham have come to the table.
The newly promoted Premier League side are now poised to sign Palhinha, with reports suggesting a deal could potentially be tied up later this week.
The situation has caused huge frustration for many fans, considering reports had pointed to a relatively straightforward deal for Wolves.
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The club have seemingly been waiting to sell Ruben Neves first, which has allowed Fulham to steal in.
Wolves have also been linked with Braga star Al-Musrati.
Apparently, the club would make a move for the Libya international if they failed to sign Palhinha.
But, ironically, Sporting are now looking to replace Palhinha with the 26-year-old, meaning Wolves could end up with neither player.
Sporting have already had a bid for Al-Musrati turned down. But O Jogo say they will return with another.
In recent days, their interest has intensified and the player’s profile is appreciated by Sporting boss Ruben Amorim.
He would apparently cost somewhere in the region of £13 million.
Wolves in danger of missing out on two transfer targets
A lot of Wolves fans are very unhappy about the Palhinha situation.
It will really anger people if he ends up going to Fulham. But things could be compounded if Sporting then go and sign Al-Musrati as his replacement.
For Wolves to get neither player would be deeply frustrating.
Either would make for a really good signing, with both possessing great physical qualities.
That said, Wolves are now being linked with a move for talented Argentinian youngster Enzo Fernandez. So hopefully the club will be able to get a deal for him over the line.