Ganso could be on his way to Sao Paulo after Santos president Luis Alvaro de Oliveira Ribeiro revealed that negotiations are taking place between the rival clubs.
Ganso, 22, has been heavily linked with a transfer away from Santos over the summer after the midfielder failed to agree terms on a new contract, while also requesting a move.
Despite two Sao Paulo bids for the Brazil international having previously been rejected it appears Ganso could finally be set to move to his long-term admirers.
As well as confirming the negotiations, president Ribeiro also conceded that Santos are no longer looking for someone to meet the player's R$53 million buy-out clause in order to sell their 45% share of his economic rights.
"There is no point Sao Paulo submitting a proposal for less than R$23.8 million (£7.3 million). It would be a waste of paper," Ribeiro told Radio Globo. "This is the price required for Ganso to leave Santos. This subject is bloated and it's difficult to care about it. I have a lot of other important things to deal with."
If it goes ahead the deal would see Santos' ownership share transfer across the city to their rivals, with rights agency DIS still controlling the remaining 55%.
Sao Paulo would still need to reach an agreement with the agency, but it is believed the potential for profit on a resale of the player would mean DIS are unlikely to get in the way of the deal being completed.