Wolves in talks over £35m deal for Valencia's Joao Cancelo

Joao Cancelo spent this season on loan at Inter Milan from Valencia

Wolves are in talks over a deal to sign Valencia right-back Joao Cancelo, according to Sky in Italy.

The fee under discussion is in the region of £35million (€40m), Sky in Italy are reporting.

Portugal international Cancelo was on loan at Internazionale last season and is represented by Jorge Mendes, who has a strong relationship with Wolves.

Cancelo will not be going to the World Cup after he was left out of the Portugal squad for the tournament

The Championship title-winners, who will be playing Premier League football next season, have signed several players represented by Mendes in recent years, including Ivan Cavaleiro, Diogo Jota and Ruben Neves.

Cancelo joined Valencia in the summer of 2014 - initially on loan - before moving to Italy last summer.

The 24-year-old came through the ranks at Benfica, and has scored three goals in six appearances for Portugal.