According to The Guardian, bottom-of-the-table Wolves want up to £40M for the 25-year-old striker, who has scored just once in 16 Premier League games this season.
Strand Larsen is yet to score a Premier League goal from open play this season and has recently been dropped for Tolu Arokodare as Wolves continue to look up from the bottom of the table.
Newcastle had bids of £50m and £55m turned down in the summer for the 25-year-old, and since then his form has fallen off a cliff. Now, as the January window approaches, an update on his future has been reported.
The BBC revealed on Wednesday afternoon that interest in the young forward has cooled as West Ham do not see his £40M valuation as viable.
Viktoria Plzen forward Rafiu Durosinmi, Fulham attacker Adama Traore and Crystal Palace front-man Eddie Nketiah have also been linked with the Hammers as they seek an alternative.
Wolves play host to West Ham in the Premier League on Saturday as Strand Larsen faces the side who would snap him up next month if it wasn’t for his hefty price tag.