The Biancocelesti have established initial contact with Traffic, a sports marketing agency that owns the player’s rights, in an attempt to lure the player to Stadio Olimpico.
Lazio are expected to make a formal bid for the talented defender in the coming days.
The Serie A giants attempted to sign the Brazilian last summer, but their bid came short of the player’s €3 million valuation.
Traffic are now willing to do business, but Lazio might have to offer more than €3 million to win the race for the defender’s signature.
Xandao is tied to Sporting Lisbon until the end of the season, but the Portuguese club can only exercise the buy-out option until the end of December.
Club’s difficult financial situation is likely to prevent them from entering the bidding war for the player who has made 8 league appearances this season and scored 1 goal.