Sao Paulo have denied Atletico Madrid tried to sign young defender Lyanco in January, but conceded he is likely to leave the club during the next European transfer window.
The 20-year-old, who is currently featuring for Brazil at the CONMEBOL Under-20 Championship, has also been linked with a move to Serie A champions Juventus.
Sau Paulo director of football Jose Jacobson Neto accepted there was interest in Lyanco in January, but insisted Atletico did not make an offer for the centre-back.
"There was absolutely nothing from Atletico Madrid to Sao Paulo," he is quoted as saying by ESPN Brasil.
"The player's agent also did not come to us and there was nothing, nothing at all, but there was a possibility that we could sell Lyanco in January.
"In the next window, with a new proposal, he will leave."
Lyanco's agent Frederico Moraes reportedly travelled to Camp Nou for Tuesday's Copa Del Rey tie between Atletico and Barcelona and has said talks for the defender are ongoing.
"There is negotiation, whether it is advanced or not, we will know in the next few days," Moraes told Esporte Interativo.