Wolves are set to sign record-breaking Rochdale youngster Luke Matheson and loan him straight back to the League One club, Football Insider understands.

Matheson is regarded as one of the best young talents in the country after bursting onto the scene at Rochdale.

A Wolves source has told Football Insider that the club see Matheson as a potential star in the making and they have moved to agree a deal with Rochdale this month.

The Premier League big hitters are finalising a deal today for the brilliant youngster to fend off any possible rival interest from fellow interested elite clubs between now and the summer transfer window.

Full-back Matheson is the youngest player in Rochdale’s history to play for the club after making his debut aged 15 years and 336 days.

Matheson scored the equaliser for Rochdale against Manchester United in the League Cup in September, aged just 16 and he impressed in this month’s FA Cup clash with Newcastle.

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Rochdale were reluctant to lose Matheson, but agreed to deal as long as Wolves were prepared to send him back to Spotland for the rest of the season.

Wolves are keen to develop their youth set-up and Matheson will link up initially with the club’s Under-23s before Wolves try and develop him into becoming a first-team regular.

Nuno Espirito Santo’s side have been busy this window, and brought highly-rated winger Daniel Podence in from Olympiakos on Thursday.

That signing was supplemented by the departure of forward Ivan Cavaleiro to Fulham on a permanent deal earlier this month.

In other Wolves news, it has been revealed that one of their Premier League rivals are in advanced talks to sign a Wolves centre back.