The Republic of Ireland international made 28 appearances as the Black Cats were relegated from the Premier League but with the North-East outfit currently without a manager, his future at the club is uncertain.
It has been suggested by the Irish Times that the 36-year-old wants to remain at the Stadium of Light but should he leave, Wolves are said to be considering a move for the veteran.
A source said: "John, ideally, wants to remain with Sunderland but only if he's going to play. If their new manager is not overly keen on John, then he has to leave, because his Irish place is dependent on him being active at club level.
"John has never been to a World Cup - he has played Champions League finals, FA Cup finals, captained Sunderland in the League Cup final and been to the Euros, but he wants to go to a World Cup.
"He knows he may not get there if he's sitting on a bench for the last year of his career. Four clubs are interested in him [all in the Championship]. Wolves are one of those."
O'Shea has spent the last six seasons at Sunderland, playing 216 times in all competitions.