Wolfsburg sporting director Klaus Allofs has revealed the club are advancing in talks with Basel about the transfer of Breel Embolo.
The 18-year-old has scored four goals in 10 Swiss Super League appearances so far this season and was on target in his first international start when Switzerland beat San Marino 7-0 earlier this month.
Allofs confirmed Wolfsburg's interest earlier in October and has now disclosed that negotiations are developing further.
"We are on the way, working economically. A good deal is progressing," he is quoted as saying by Bild.
Wolfsburg sold Kevin De Bruyne and Ivan Perisic ahead of the 2015-16 season, and used some of the funds generated to sign Julian Draxler from Schalke.
Allofs knows that further reinvestment is needed if the club are to continue to challenge at the top of the Bundesliga and in Europe.
"We will need to invest further if we are to succeed," he added.
