FC Porto reportedly want to sign Danilo on loan from Manchester City in January for the rest of the season.
According to The Sun's Daniel Cutts, the Portuguese outfit are looking to bring in their former star amid his concerns over a place in Brazil's 2018 World Cup squad, and he is already believed to be considering his future at City having only arrived in the summer in a £26.5 million move.
Cutts quoted an Etihad Stadium source as saying:
"Danilo has not had a great time here. He cannot get into the first-team and is only making the odd appearance.
"He is concerned it is harming his chances of playing at next summer’s World Cup finals. It is affecting his performances when he does play.
"His old club Porto are taking a look. We have good relations with them after they sold us Eliaquim Mangala and Fernando.
"His early form doesn’t bode well but he is highly thought of in Porto and we know that they are interested to take him back."
Cutts added Danilo could move on loan for the remainder of the season with Porto having the option to buy the 26-year-old in the summer.
The Brazilian has appeared in just one of City's last nine Premier League games—the 2-1 win over West Ham United— and played for just 45 minutes in it.
Although naturally a right-sided player, Danilo might have hoped to have been the first choice to replace the injured Benjamin Mendy at left-back—particularly as Kyle Walker has his preferred right-back position sewn up—but manager Pep Guardiola has instead turned to Fabian Delph to provide cover.
As Goal's Sam Lee noted ahead of City's final UEFA Champions League group game with Shakhtar Donetsk, Danilo's selection showed his status as a squad player:
Simon Bajkowski of the Manchester Evening News and football journalist Shane Burns weren't impressed with Danilo's contribution in the match, which ended in City's first defeat of the season in any competition:
A return to Porto, where he played for over three years before joining Real Madrid, could help get the best out of Danilo, and he'd likely have a better chance of making Brazil's squad for the World Cup in Russia as a result.
However, while he may not have set the world alight at the Etihad and not yet been utilised that much, City are unlikely to write him off so soon and deprive themselves of cover by allowing him to depart in the middle of the season.
Unless Danilo strongly pushes to leave, it would seem more likely he'll be staying put for the second half of the campaign.