Wood is expected to leave Leicester this summer after finding himself down the pecking order at the King Power Stadium last season.
The powerful forward made just six appearances for Nigel Pearson's side last term and ended last season on loan at Ipswich Town.
Pearson is thought to be willing to cash in on Wood this summer with the player entering the final year of his contract at Leicester.
Wolves have held a long-term interest in Wood and came close to signing the New Zealand international last summer only for the move to fall through at the last minute.
Molineux boss Kenny Jackett is a huge admirer of Wood having worked with the 23-year-old during his time charge of Millwall with the striker scoring 11 goals in 18 games during a successful loan spell at the Den.
Jackett is keen to add extra options in attack ahead of next season as Wolves look to mount another bid for promotion to the Premier League after narrowly missing out on the Championship play-offs last term.