Wolves are said to be willing to pay the midfielder's £100,000 compensation fee.
Joe Dodoo has surprisingly been left out of Rangers' Europa League squad.
The Rangers midfielder is Pedro Caixinha's seventh of eight new recruits at Ibrox.
Rangers chairman Dave King has been slammed by Kris Boyd.
Norwich City's Steven Naismith could be on the move this summer.
West Ham have terminated the contract of left back Stephen Hendrie.
Rangers have reportedly abandoned their interest in Rashid Sumaila.
Rangers have signed goalkeeper Aidan McAdams from Celtic.
Rangers have snapped up Mexican international midfielder Carlos Pena.
Burnley, Celtic and Middlesbrough are reportedly keen on Bristol City's Joe Bryan.
The 28-year-old becomes Pedro Caixinha's eighth Ibrox recruit since taking the Rangers position in March.
Rangers new boy Alves was Pedro Caixinha's first Ibrox recruit.
The 33-year-old failed on a trial spell at Rangers three years ago. Now he will hope for success at Ibrox against Pedro Caixinha's men.