The Uruguay international endured a frustrating first season at San Siro following his transfer from Atletico Madrid last summer, scoring just two goals in 22 appearances.
He has been strongly linked with a move to Brazilian side Internacional, and according to Branca the 33-year-old striker will be free to negotiate his future with any club.
"We are close to reaching an agreement for the termination of his contract," Branca told Gazzetta dello Sport. "We will see what happens in the next days."
Julio Cesar's future at Inter has been a hot topic of debate in recent days as the Nerazzurri close in on Samir Handanovic, but Branca insists that the Brazilian shot stopper is going nowhere.
"Julio Cesar will stay at Inter," the director confirmed.
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