Nuno Espirito Santo says Jesus Vallejo must go and find a club who will give him regular football, adding: "The talent is there."
Jesus Vallejo is expected to return to Real Madrid this month after struggling during his loan spell with Wolves, Nuno Espirito Santo says.
The Wolves boss wants the centre-back to get more regular playing time, having only used him twice in the Premier League this season.
Vallejo is expected to be loaned out again once he returns to Madrid.
"I'm going to be clear: Jesus probably is going because he wants to play," Nuno told reporters on Friday ahead of Wolves' FA Cup third-round clash with Manchester United.
"He's a young and talented player that we brought here with high expectations, but it didn't work out. It's time for him to go and find a club where he can play and keep on progressing because the talent is there.
"It's based on reality. He had moments that he played, moments that he performed well, and some moments he didn't perform well. That's the case of Vallejo. Clearly, it didn't work out.
"When things don't work out, you have to look at yourself as a coaching staff. How can you make things work for the best? Sometimes you don't have time, it's three parts: you, the player, the clubs, all these things."
Vallejo's exit is expected to be sanctioned as Willy Boly is close to a return to action.
The 28-year-old is back in training following an ankle fracture he sustained in October.
"He's running already on the pitch and I'm so happy," said Nuno. "Naturally, he'll improve – it's a good sign."