Palmeiras are watching David Luiz's situation at Chelsea.

The Brazil defender, off contract in June, is in dispute with Chelsea as they refuse to offer him more than a rolling one-year deal as he's over 30 years of age.

"We will see what the future will bring us. I like this club, everyone knows that I want to stay," said Luiz.

However, despite his words, the defender is putting plans in place for next season with a return to Benfica considered.

Palmeiras are also in the mix, says Fox Sports Brasil, with an approach now being prepared.