The bid includes a £7 million down payment and further add-ons will take the
package to the £10 million
Allardyce has been trailing Jarvis for the last two months and is keen to complete a deal before Saturday's trip to Swansea City. Jarvis played in Wolves' win over Barnsley on Tuesday night.
Wolves could also lose Steven Fletcher to Sunderland before the transfer window closes, after manager Stale Solbakken admitted every player had his price.
He said: "It’s on the top political level now because every player has a valuation and if that valuation is matched I’m in the discussion.
"It’s not my money so someone will make a final decision. I don’t know if the two clubs are still talking. I’ve had my say and the final call will be taken. We do it together and we’ll do the best for Wolverhampton."