The Daily Mail reports that talks between the 39-year-old and one of Brazil's biggest clubs are at an early stage, with Sao Paulo only recently emerging from a transfer embargo and keen to make a statement signing.
Vardy is weighing up the move despite having initially targeted a return to the Premier League, and has also held discussions with West Ham United among other English clubs. The former England striker is determined to take his time over the decision, with his family having felt they rushed into last year's switch to Cremonese, even though they valued the experience of living in Italy.
Vardy had the option of a second season with Cremonese had the Lombardy club stayed in Serie A, but the Italian outfit were relegated after finishing 18th. As a free agent, he is able to complete a move outside the transfer window, though he would ideally like matters resolved before it shuts.
The striker ended a 13-year association with Leicester at the close of the 2024-25 season, having announced his departure the previous April. He scored his 200th goal for the club in the closing stages of that campaign and left the King Power Stadium as the greatest player in Leicester's history.
Vardy was central to the Foxes' remarkable rise through the 2010s, winning the Premier League title in the famous 2015-16 season, the FA Cup and two Championship titles during his time at the club.
Sao Paulo have already made four free-transfer additions this window, alongside a loan signing, as they look to strengthen for the remainder of their campaign, and see the experienced forward as a rare opportunity to add proven Premier League pedigree without a transfer fee.
Journalist Fabrizio Romano has separately reported that Vardy was offered to the Brazilian side and is assessing several options before committing to his next club, with no final decision yet made.
West Ham, managed by Nuno Espirito Santo, have also made contact as they continue to search for attacking reinforcements before the window closes.
Vardy scored seven goals and added two assists in 29 appearances for Cremonese last season as the club were relegated from Serie A, bringing an end to his first experience of playing outside England after leaving Leicester.