Wolves hero Paul Ince insists manager Bruno Lage has a squad capable of European qualification.
Ince is impressed by their summer market work.
He told BoyleSports Football Odds: “Matheus Nunes is a good player but it’s a lot of money for him. They needed someone fresh in midfield because Joao Moutinho is getting on a bit and Ruben Neves’ future is still unknown.
“Nunes can play forward, get himself a goal and can play with both feet and under Bruno Lage, Wolves are more expansive so I think they’ll be OK. If they go and spend that money on a player of Nunes’ ilk then they need to be finishing in the top six or seven.”
Pedro Neto has been linked with a move away to Arsenal in the last week, as the London club hold a firm interest in the winger.
However, Wolves have no desire to let him leave this month, and Ince believes the club must keep hold of Neto if they are to make that European charge.
He added: “I watched Pedro Neto a couple of years ago and said that he is a top three player. He could play for the likes of Man City and Liverpool.
“Now that he’s back playing regularly after injury, Wolves can challenge for European places and they’ll need to keep Neto in order to do that. The only reason they should sell him is if they want to balance the books after signing Nunes and I do believe Neto can play at the very highest level.”