West Ham terminated Henry's contract in July 2018 after controversial emails were leaked, and the former midfielder later served a year-long ban after admitting misconduct.
But there would be nothing to stop Wolves from hiring him now.
Henry previously worked as chief scout at Chelsea, Sunderland and Everton, and oversaw signings such as Manuel Lanzini, Dimitri Payet and Diafra Sakho during his spell at West Ham.
The 61-year-old hails from the north east, but spent most of his playing career in Lancashire with Manchester City, Bolton Wanderers and Oldham Athletic.
But he later appeared for Stoke City and Shrewsbury Town - each based within an hour's drive of Wolverhampton.
Wolves fans - what would you make of the former West Ham man's appointment?
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