Portuguese giants Porto are readying themselves for an approach from Liverpool for Brazilian star. Otavio, with a bid potentially arriving as early as Wednesday.
The 26-year-old boasts a release clause of €40m in his current contract, but that lower price expires at the end of June, instead increasing to €60m at the beginning of July.
And A Bola reports that Porto are expecting an offer to arrive from Liverpool before the start of July, in order to snatch Otavio at the cheapest price available.
The attacking midfielder could also be used in a possible swap deal with the Reds, after midfielder Marko Grujic spent last season on loan at the Portuguese giants. They were incredibly impressed by the 24-year-old during his time in Liga NOS, and would like to see him stay at the club for another season.
That could open the door for some negotiating between the two sides, although Porto would prefer that if the two deals were to go ahead, that they would be treated as separate transfers.
They are also hoping that if Liverpool are to make their move, they will do so before the beginning of July, so the incoming transfer money will count towards the current financial year, which ends on 30. June.
The Reds are aiming to bolster their squad ahead of the coming season, and could view signing the 26-year-old for the cost of his buy-out clause as a bargain in the current transfer climate.
Reports in Portugal do differ on Liverpool's stance regarding this transfer, with some stating that a bid for Otavio has already arrived, while another suggests that they have until 15 July to activate the aforementioned buy-out clause.
Otavio scored five goals and managed 12 assists in all competitions for Porto last season.