The 25-year old midfielder is in his second season-long loan at his former club who will look to bring him back to his homeland on a permanent basis in the next month or so.
"There are still more than 60 days left on his contract, so there are a couple of points to take into consideration,” Sao Paulo vice-president Joao Paulo de Jesus Lopes told ESPN Brasil.
"The first point is that we are interested in the player and the second point is that we must deal with this situation closer to the end of the deal.
"If we do it too early, it will end up costing us more money."
If no deal is agreed before that time, Denilson will return to North London in the summer.