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Wolves have signed Brazil international Matheus Cunha on an initial loan deal from Atletico Madrid, the Premier League club have announced.

Cunha, 23, will join the club from January 1 subject to work permit approval with an automatic permanent deal – reportedly worth a club-record £43million – to follow.

A statement on the club’s website read: “Matheus Cunha will become Julen Lopetegui’s first signing as Wolves head coach, joining on loan from 1st January, subject to work permit.

“The Brazilian international flew to the UK and completed his medical earlier in the week, finalising a loan move which will automatically become a permanent deal until 2027, should certain clauses be triggered.”

The former Sion, RB Leipzig and Hertha Berlin forward joined Atletico in the summer of 2021 and scored seven goals in all competitions last season, but has struggled for playing time this term.

He helped Brazil win gold at the delayed Tokyo Olympics last summer and has since won eight senior caps, but missed out on the squad for the recent World Cup in Qatar.

Cunha told the club’s website: “I’m really excited to be part of this group and to be part of this club – it’s a big club.

“I’m excited to play in the Premier League, to play in Wolverhampton, and I think the most important point is that I’m happy like a kid.

Julen Lopetegui
Julen Lopetegui has made his first signing as Wolves boss (Simon Marper/PA)

“(Lopetegui’s) a big coach, he has a big mentality.

“He told me about Wolverhampton having a big project and I believe in it a lot, and I believe in him.”

Cunha will join former Atletico team-mate Diego Costa at Molineux and added: “He’s a very good guy, a really smiley guy, a really Brazilian guy and we’re always smiling together.

“I called him and he said to me, ‘Come, come. Please, please. It’s a big group here. It’s unbelievable. The guys are nice’.”