Nuno, who guided Wolves from the Championship to an established Premier League team, left his role by mutual agreement at the end of 2020-21.
Having led Wolves to successive seventh-placed finishes, Nuno's efforts were curtailed by injuries to key players Raul Jimenez and Pedro Neto this season, while Diogo Jota was sold to Liverpool with the club eventually finishing 13th.
Nuno did look set to takeover at Crystal Palace, but talks with the Portuguese – who has also been linked with Everton – have reportedly broken down.
While it remains to be seen where Nuno's next job will be, Wolves have moved to hire a compatriot in the form of ex-Benfica boss Lage.
Lage, 45, left Benfica in 2020, and has previously coached in England, acting as an assistant to Carlos Carvalhal at Sheffield Wednesday and Swansea City.