Wolves are set to appoint Vitor Pereira as their new head coach after agreeing an 18-month deal with the Portuguese.

Pereira, currently in charge of Al Shabab, will replace Gary O’Neil, who was sacked following Saturday’s damaging 2-1 defeat to Ipswich, which left Wolves five points clear of safety in the Premier League.

The 56-year-old has agreed a deal until the end of the 2025/26 season after Wolves agreed to pay the Saudi Pro League side compensation.

READ MORE: Why sacking Gary O'Neil was the only decision Wolves could make

READ MORE: Wolves make decision on next manager after Gary O'Neil sacking

An official appointment is expected to be made in the next 24 hours, with his first game in charge a crunch clash against Leicester on Sunday.

Pereira has won league titles in Portugal, Greece and China during an extensive managerial career and was close to replacing Rafael Benitez as Everton manager in 2022.

On that occasion, he lost out to Frank Lampard after fans protested against his reported appointment, with the message ‘Pereira out, Lampard in’ being painted on a wall at Goodison Park.

But it appears he is now set for a Premier League job and would become the third Portuguese manager to take charge of Wolves following Nuno Espirito Santo and Bruno Lage as agent Jorge Mendes continues to have influence at Molineux.

O’Neil was sacked after Saturday’s defeat – Wolves’ fourth in a row – left them second-bottom of the English top flight with nine points from 16 games.

The departure of the 41-year-old and his backroom staff came just three days after chairman Jeff Shi said the club were “united” behind O’Neil following the 2-1 defeat at West Ham.

Saturday’s defeat was their 11th in the Premier League this season –they have had only two wins.

Shi said: “We’re very grateful to Gary for all of his effort, dedication and hard work during his time at the club, and we wish him and his team the best of luck for the future.”

O’Neil replaced Julen Lopetegui just four days before the start of the 2023-24 season, with Wolves going on to finish 14th.

There were ugly scenes at full-time after the Ipswich defeat as Rayan Ait-Nouri was shown a second yellow card and Matheus Cunha was involved in a confrontation with Ipswich staff, which led to him receiving a Football Association charge yesterday.

Cunha was seen confronting members of Ipswich’s security team at Molinuex.

If found guilty Cunha, who has been Wolves’ best player this season, could be facing a suspension.

An FA statement read: “Matheus Cunha has been charged with misconduct following the Premier League match between Wolverhampton Wanderers and Ipswich Town on Saturday, 14 December.

“The forward allegedly acted in an improper manner after the final whistle.

“He has until Thursday, 19 December, to provide a response.”

Pereira will have to hit the ground running at Wolves, with a hectic festive fixture schedule coming up.

The Portuguese manager will prepare for his first game as Wolves boss at relegation rivals Leicester, which kicks off a run of three matches in seven days.

They then welcome Manchester United on Boxing Day before a trip to Tottenham three days later.

After a brief break over the New Year, quick-fire games follow at home to Nottingham Forest in the Premier League and at Championship side Bristol City in the third round of the FA Cup.