Wolves moved to sign Austrian striker Sasa Kalajdzic earlier this summer but he is now out with a cruciate ligament injury and his return date is currently unknown.
Kalajdzic suffered the injury in his first appearance and start for Wolves in the home win against Southampton, with Bruno Lage’s side looking at former Chelsea man Costa to fill the void left by the Austria international.
Unfortunately for Wolves, the Brazil-born Spain international’s work permit application has been rejected as the striker did not get enough points, jeopardising the move.
The 33-year-old forward was scheduled to arrive in Wolverhampton tonight and undergo a medical tomorrow before signing for Wolves.
Wolves are appealing the decision to reject Costa’s work permit application and the appeal is set to take place.
Costa last played for Atletico Mineiro in Brazil, who he joined in the summer of 2021 and left early in January this year.
In all competitions for the Belo Horizonte based club, Costa made 19 appearances, recording figures of five goals and an assist in their league-winning season.