Everton are ready to make a contract offer to Nuno.
Less than a fortnight after stepping down as Wolves manager, Nuno is in talks to take over at Everton following Carlo Ancelotti's return to Real Madrid earlier this week.
The Toffees are back in the hunt for a new coach after Ancelotti left on short notice, and Nuno is understood to be on the club's four-man shortlist of potential replacements, says the Daily Star.
The 47-year-old is a free agent after leaving Molineux by mutual consent at the end of this past season, where Wolves finished a disappointing 13th in the Premier League.
Italian journalist Nicolo Schira alleged talks between Nuno and Everton are already advancing, with the Merseysiders said to be preparing a three-year contract.