Recent takeover speculation is said to have put a hold on Wolves' transfer plans.
Wolverhampton Wanderers manager Kenny Jackett
Wolverhampton Wanderers could make their second summer signing before their proposed takeover goes through, the Express & Star reports.
Manager Kenny Jackett suggested to the same publication on Tuesday that incoming transfers have been put on hold pending the outcome of a proposed takeover - which is said to involve Chinese billionaire Robin Li and Portuguese super agent Jorge Mendes.
Mendes (left) has a string of high-profile clients
Powell scores against Wigan on his Premier League debut
Powell was billed as Paul Scholes' heir when he moved to Old Trafford from Crewe Alexandra for a reported £4 million fee in 2012, but was released this summer after failing to make an impression.
Hull City, where the 22-year-old spent the latter half of last season on loan, are also said to be chasing his signature, along with a string of Championship clubs including Blackburn Rovers.
Powell is the third Manchester United player to be linked with a move to Molineux this window, after James Wilson (Express & Star) and Ashley Fletcher (Express & Star), and would become Wolves' second new recruit after goalkeeper Andy Lonergan.
Lonergan is Wolves' only summer recruit