The Portuguese coach has spent four years at Molineux, leading the West Midlands club from the Championship to the Premier League in his first season and then consecutive top-half finishes plus a run to the Europa League quarter finals in 2019-20.
Espirito Santo signed a new contract in September last year but leaves by mutual consent and denies that his departure is linked to any other job.
As well as being among many names suggested for the Parkhead role, the ex-Porto boss has also been suggested as a potential target for Spurs following Jose Mourinho's departure. However Sky Sports claim he will take his time before deciding upon his next move, and any new job is not imminent, distancing him from the Celtic position which Eddie Howe is still widely expected to fulfil.
Howe though, is listed at 16/1 to replace the outgoing boss at Wolves according to oddschecker, and while odds-on for the Parkhead position links between the Englishman and a variety of jobs in the Premier League continue.
The former Bournemouth boss was believed to be close to being confirmed as the new Celtic boss last month, but an announcement has yet to be made.
Favourite to replace Espirito Santo is former Benfica manager Bruno Lage with Rafa Benitez 4/1 second-favourite. Former Roma manager Paulo Fonseca is third at 8/1.