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Wolves will sign James McFadden next week and offer the Scotland international a two year contract at Molineux.
According to reports, only a medical and some paperwork need to be completed and then a deal will be agreed.
McFadden left Birmingham last season.
Wolves boss Mick McCarthy admitted discussions were ongoing: "I hope there are some developments with James McFadden. He has looked fine this week.
"I want to sign him, but I don't know how far we are down that road."
Written by Conroy Sanders
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