Leeds have agreed a fee with Wolves for left-back Barry Douglas, Sky Sports News understands.
The deal could be worth as much as £3m when potential add-ons are taken into account.
Douglas is now free to discuss personal terms with Leeds, and is expected to undergo a medical on Thursday.
The 28-year-old made 42 appearances for Wolves last season as he helped the Midlands side win promotion to the Premier League.
Douglas has one cap for Scotland, and is set to become Marcelo Bielsa's first permanent signing since taking charge at Elland Road.