According to the Mirror, Terriers boss David Wagner feels his side is in need of some additional firepower after only scoring 28 goals last season - the joint worst in the league alongside relegated Swansea - and has highlighted Cavaleiro as a player that could offer that.
The ex-Benfica youngster scored nine goals and assisted 12 times in 42 appearances during Wolves' impressive promotion campaign last season.
Having joined the West Midlands club two years ago in a £7m deal from AS Monaco, the forward has already gone on to make 70 appearances at Molineux and score a total of 14 league goals.
Despite that, Wolves' Chinese ownership are understood to be willing to let the forward go as part of their ambitious plans ahead of the club's Premier League return next season.
Cavaleiro progressed through the youth ranks of Portuguese giants Benfica, featuring eight times in the league for the senior team. The 24-year-old won the Portuguese league with Benfica in 2013-14 while the club also finished runners-up in the Europa League.
Cavaleiro spent a season on loan with Spanish side Deportivo La Coruna during his time with Benfica. He scored three times in 34 La Liga appearances for the Galician club.
He scored one in 14 league appearances for Monaco prior to his move to England.
Cavaleiro has two senior international caps for Portugal, making his debut in February 2014, shortly after scoring his first competitive goal for Benfica in a Portuguese league cup match.
Huddersfield finished 16th in the Premier League table last season and manager Wagner wants to ensure a lack of goals isn't an issue again next campaign as the Terriers seek to avoid another relegation