PSG defender Diego Lugano in talks with Grêmio and São Paulo - report

Paris Saint-Germain defender Diego Lugano is reportedly in talks with Brasileirão sides Grêmio and São Paulo over a possible move in the January transfer window.

• Grêmio interested in signing former São Paulo defender Diego Lugano

The Uruguay captain has fallen out of favour with PSG coach Carlo Ancelotti, who has preferred Brazilian pairing Alex and Thiago Silva at centre-back this season.

Lugano, 31, has expressed his desire to move to a club where "he will play more often" but also says he will remain in Paris if he is wanted.

Brazil's Radio Guaiba have reported that Lugano has been impressed by the plans of new Grêmio president Fabio Koff, who has promised big signings ahead of the club's likely qualification for next year's Copa Libertadores.

Earlier this month his agent, Juan Figer, revealed that Grêmio have already shown an interest.

He said: "Grêmio are among the clubs that showed interest after the last transfer window closed.

"There are matters beyond financial ones. But we have good relations with the club's board, so it's something we can discuss. So far the only offer was from Fluminense, in the last transfer window."

Lugano has also been strongly linked with a return to São Paulo, where he spent three years and made over 90 appearances.

The defender was also part of the club's 2005 Copa Libertadores and FIFA Club World Cup-winning sides.