The Portuguese champions believe the Merseysiders will submit an official bid over the coming week and that it will be Â£8m more than Leeds were prepared to pay.
The player's agent has been in England in an attempt to broker a move for his client, with the Primeira Liga side willing to do business at around the Â£38m mark.
Otavio, who can slot in anywhere in midfield or across the frontline, has played 237 games for Porto since joining them from Vitoria Sport Clube in 2016. And he has contributed 24 goals and 62 assists for his team. Last season, he was in fine form as Porto cruised to the league title.
And the 27-year-old was rewarded with seven caps for Portugal, despite playing for Brazil at age-group level during the early part of his career.
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