Wolves recently recalled Cutrone from Fiorentina, where he had been on an 18-month loan spell, after they were hit with a striker shortage.
The club’s leading striker Raul Jimenez is yet to return after suffering a clash of heads with David Luiz at the Emirates Stadium back in November. The 29-year-old Mexican international was later diagnosed with a fractured skull.
Cutrone made four appearances for Wolves upon his return to Molineux but failed to score in those appearances. He also failed to score in 13 appearances for Fiorentina in the first half of the season.
Wolves have since signed Willian Jose on loan from Real Sociedad to share the striking responsibilities with 18-year-old Portuguese forward Fabio Silva.
Cutrone joined Wolves from AC Milan in the summer of 2019 for £16m but has found the back of the net just three times in his 28 appearances across all competitions.
The 23-year-old could make his debut for Valencia, who are 14th on the Spanish La Liga table, on Sunday against Athletic Bilbao.
Cutrone has been capped once by the Italian national team.
