The Brazilian forward is set for a return to the Premier League but that move is now in doubt.
Wolves were working on a deal to sign the Brazilian striker as a replacement for injured forward Sasa Kalajdzic.
Kalajdzic was a £15m signing from German Stuttgart but suffered his cruciate ligament during his Premier League debut against Southampton on Saturday.
His injury pushed Wolves to look for a replacement with 33-year-old Costa identified as the perfect replacement.
However, that move could collapse after Costa’s initial application for a work permit was rejected because he didn’t have enough points.
The former Atletico Madrid star is expected to be in England to appeal the decision as he is keen to join Bruno Lage’s men.
What you need to know about the failed application
Costa’s work permit issue comes as a result of Brexit which demands that foreign players must earn several points from the Governing Body Endorsement, GBE, to get permission to play in England.
In this case, a foreigner is mandated to get at least 15 points in this GBE to get a work permit to get to work.
International caps and minutes played in domestic competitions are used to assess the players alongside performances in the league and continent.
It’s on these points that Costa has fallen short as his club, Atletico Mineiro hasn’t been in action since January this year.
Wolves confident Costa will get his permit
With Costa expected to appeal the decision, Wolves remain confident that the Brazilian will win his appeal.
According to the Mirror, Costa’s records for Chelsea, Atletico Madrid and in the Champions League could see him get the necessary permit on appeal.
