Tiago has been offered a new contract by Lyon, but the midfielder concedes he is tempted by a move to a bigger club.
The newly-crowned French champions are keen to hang on to their best players and are prepared to reward Tiago with an extension.
But the Portugal international admits he has visions of playing for the likes of Italian giants Juventus and Milan.
"It is true that they showed me they wanted to extend my contract before Christmas," Tiago told O Jogo.
"My agent manages all that. I am relaxed, not pressured.
"But it is true that I have other ambitions. I can see myself playing for a bigger club.
"Juventus Turin or AC Milan could be options, but the chairman (Jean-Michel Aulas) won't facilitate things."
Meanwhile, Tiago has confirmed that Lyon are keen to sign Porto duo Pepe and Ricardo Quaresma.
He added: "Lyon want to sign Pepe and Quaresma from Porto.
"But I don't know if Lyon will make efforts to recruit them or if the players will be interested in moving here."