Sky Sports sources understand former Arsenal midfielder Denilson has signed a permanent deal at Sao Paulo after being released by the Gunners.
It is understood that the Brazilian has signed a four-year contract in his homeland after being deemed surplus to requirements at the Emirates.
The 25-year old has spent the last two seasons on loan at his former club Sao Paulo, with his number 15 shirt being given away to Alex Oxlade-Chamberlain in the meantime.
His contract was then terminated by mutual consent upon his return, and he was free to find another club.
Denilson spent five years in the Gunners' first-team fold, featuring in 96 leagues games, scoring seven goals in the process.