Wolves have sacked head coach Gary O'Neil after defeat at home to Ipswich on Saturday - and are in talks with Portuguese manager Vitor Pereira to replace him.

O'Neil was axed after a dramatic 2-1 loss at Molineux, which was followed by a scuffle that saw Rayan Ait-Nouri pulled away from the pitch.

That result left Wolves 19th in the Premier League table - four points adrift of 17th-placed Crystal Palace.

Chairman Jeff Shi said in a statement: "We're very grateful to Gary for all of his effort, dedication and hard work during his time at the club, and we wish him and his team the best of luck for the future."

Wolves bosses, whose priority is Premier League survival, had been doing due diligence on a number of candidates in recent weeks - including West Brom manager Carlos Corberan and John Eustace at Blackburn.

But negotiations are ongoing to discuss Pereira's potential release from Saudi Pro League side Al Shabab.

Wolves are happy to pay his release clause and Pereira, who has won league titles in three different countries while at Porto, Olympiacos and Shanghai, is keen on a move to the Black Country.