Northern Ireland international Paterson has been offered a deal to stay at Burnley, but has yet to make a firm decision regarding his future.
The 26-year-old has scored 37 goals in 152 appearances for the Clarets since moving to Turf Moor in a £1million deal from Scunthorpe United five years ago.
He has been linked with other Championship clubs, but League One side Wolves are understood to be keeping tabs on Paterson's situation.
Meanwhile, Wolves' head of development Kevin Thelwell has conceded that, following relegation to the third tier, players may have to leave Molineux before new faces are brought in.
Thelwell said in the Express & Star: "Our squad is big enough. While we are thinking about certain players and certain positions, we can't do a great deal unless we create some space in the squad.
"It's quiet at the moment in terms of the transfer market. There's not a huge amount going on in terms of movement of our players but this is to be expected at this stage of the off season.
"Everyone is making assumptions about the current group but until we start talking to the players, it's all ifs, buts and maybes."