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The New York Red Bulls announced Jesse Marsch's departure on Friday. As he prepares to make a rumored move to Europe, patience will prove valuable.
Dortmund hire Favre from Nice eyeing consistency and to maintain their Champions League status, though are not currently aiming for another title.
The Ghana international, who has had two previous spells in Serie A with AC Milan, returns to Italy after just one season in the Bundesliga.
Preseason is underway at the club following their first-ever relegation from the top flight, and Wood, 25, is hoping to remain in the Bundesliga.
Stuttgart are prepared to knock back any approaches this summer for defender Benjamin Pavard.
Morocco international Amine Harit has been allowed to return to Germany after his passport was suspended following a fatal car crash in Marrakesh.