Halford's current loan agreement with Pompey is due to expire on January 3. But the indications are the 26-year-old, who can play at full-back or on the wing, will be remaining on the south coast.
Wolves manager Mick McCarthy said: "Ultimately I think we'd like to think there was a deal to be done for Greg but we will see.
"They (Portsmouth) want him and, if they take him, they'll have to take him for the rest of the season and we'd have to accept being a player down. He's doing well for them and I think they'd like to extend the loan."
McCarthy added: "You might have thought I'd have brought him back with all our injuries.
"But I wouldn't have played him at right-back because Ronald Zubar is fit and I wouldn't have put him at right wing because Matt Jarvis is fit. I wouldn't have brought him back to put him on the bench because that wouldn't do either of us any favours."
Source: PA
Source: PA