Liverpool were thought to be considering making a move for Butland, but it seems that Roma stopper Allison has been made their first choice, despite his £60 million price-tag.
That could leave Wolves free to sign Butland from Stoke City, if they make a move swiftly.
The Daily Express have claimed that Wolves have made Butland one of their top targets this summer, as they look to sign a new number one.
Butland was relegated with Stoke, but was arguably the Potters’ best performer over the past campaign.
The England international is heading to the World Cup with the Three Lions, where he is competing with Jordan Pickford for the number one shirt.
If Wolves did sign Butland he would be their record signing, and would surely dislodge John Ruddy from Nuno’s starting line-up upon his arrival.