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Wolves have announced the signing of Portugal midfielder Matheus Nunes from Sporting Lisbon for a club record fee.

The Premier League club were understood to have agreed to pay Sporting an initial 45million euros (£38m) for the 23-year-old, with a further five million euros (£4.2m) in potential add-ons.

That eclipses the £35m Wolves paid Porto for Fabio Silva – now on loan at Anderlecht – in 2020.

Nunes arrives on a five-year deal with a one-year option after two-and-a-half seasons with Sporting.

The Brazil-born player made his Portugal debut last year and has won eight caps in total, scoring one goal.

Wolves chairman Jeff Shi said on the club’s official website: “We are very happy to welcome Matheus to Wolverhampton and delighted to add another exciting young talent to Bruno’s (Lage) squad.

“Matheus has had two excellent seasons at the top level in Portugal with Sporting and is widely regarded as one of the most exciting prospects in world football, so we are thrilled that he has chosen the Premier League and Wolves as the next step in what we hope will be a fantastic career.”

Nunes is Wolves boss Bruno Lage’s third signing of the summer following deals for Portugal forward Goncalo Guedes, who joined from Valencia, and Republic of Ireland defender Nathan Collins, who signed from Burnley.

Fabio Silva was Wolves' previous record signing (Tim Keeton/PA)
Fabio Silva was Wolves’ previous record signing (Tim Keeton/PA)

He will join up with the squad ahead of Saturday’s away clash with Tottenham.

Nunes said: “I’m very excited. For me, I could play tomorrow already, but I can’t because the game is Saturday, but I’m looking forward to it.

“I think the club itself (convinced him) and also I spoke to some of my team-mates because I play with them for the national team.

“The coach as well, he really wanted me and I wanted to play in the Premier League. I think it’s the right next step for me and I’m very happy to be here.”