Journalist Liam Keen has claimed that Wolverhampton Wanderers are likely to activate the two-year extension clause in Nelson Semedo's contract.

What's happening with Semedo at Wolves?

The defender's contract runs out at the end of the season, and the 29-year-old has been linked with a return to Benfica.

However, the club have a two-year extension which they can activate at any time until the summer, so the ball is in their court with regard to Semedo's future.

If they do extend his deal, they could either sell him on for a fee or keep him, while this extension gives the club the flexibility to decide rather than lose him on a free transfer.

Speaking on the E&S Wolves podcast, Keen hinted that the club will activate the clause and claimed that the move makes a lot of sense.

He said: "This one's a fairly standard one that makes a lot of sense, I think. His contract runs out this summer; that's still the same deal that he signed when he arrived at Wolves from Barcelona, and there's a two-year option on that, which is in Wolves' favour to take up.

"They've got until mid-May to make that decision. It's very much in their hands, and as it stands, it's very likely they're going to take it up. And that makes sense for a number of reasons; he's improved - aside from that second half against Bournemouth - but overall, under Lopetegui, he has been better since the manager came in as opposed to the first half of the season.

"He's steadied and settled into the team, which is helpful. He's obviously playing regularly; and then also from a financial point of view, if Wolves decide that they do want to move him on in the summer or they get an offer that is too difficult to refuse, they want him, obviously, still at the club and under a two-year contract to maximise his value.

"Otherwise, they lose a player that they invested a lot of money in three years ago on a free contract. So it's likely to happen."

Has Semedo been a good purchase?

Wolves raised eyebrows when they spent nearly £37m to bring the Portugal international to Molineux after he failed to impress during his time at Barcelona, but he has delivered some good performances throughout his 89 appearances for the club.

He is a strong defensive full-back, as he ranks highly for tackles, blocks and clearances (as per FBref), but his lack of attacking prowess is notable, with just two goals and four assists for the club.

If he is to stay beyond the end of the season, he may well remain as the first-choice for Julen Lopetegui, so the Spaniard may choose to prioritise other areas of the squad in the transfer window should Wolves survive relegation with the Old Gold in control of this situation.