Coady, 30, has been with Wolves since 2015 and has made 273 league appearances for the Molineux club.
He was loaned to Everton this season, with the Toffees having the option to buy the English center-back at the end of the term.
The England international is now on his way back to Wolves after Sean Dyche’s side decided not to activate the option in his loan agreement.
Nottingham Forest and Premier League newcomers Sheffield United are both interested in the 30-year-old centre-back.
However, it is speculated that Forest may have a financial advantage over the Blades in matching Coady’s financial criteria for next season.
Coady is not a stranger to Bramall Lane, having spent the 2013/14 season on loan from Liverpool, but Paul Heckingbottom’s team may fall behind in the race to recruit Coady due to a limited budgetary choice.
The 30-year-old defender is anticipated to leave Molineux this summer, as Wolves are expected to cut their FFP team budget for next season.
It remains to be seen whether Nottingham Forest will take advantage of the opportunity to sign Coady.
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