Eastwood was to have joined City on loan in March but Wolves boss Mick McCarthy changed his mind after Wolves supporters complained that the former Southend man had not been given a fair crack of the whip.
Wolves,who have released Gary Breen, will look for the £1.5m they paid for Eastwood but the Sky Blues are expected to offer Kevin Kyle plus cash.
Eastwood and Kasper Schmeichel are just two targets that Ray Ranson hopes to have in, in the next week as a way of encouraging season ticket sales.