The 25-year-old Brazilian has been at Porto since 2016 and has netted 17 goals and provided 43 assists in 165 appearances for the club.
He is out of contract at the end of the season and Porto have been trying to convince him to sign a new deal.
His contract situation at Porto has been noticed by several clubs and Arsenal and Roma are tracking the situation.
And according to Italian journalist Nicolo Schira, the attacking midfielder will not be signing a new deal with Porto in the coming months, with Arsenal and Roma considering signing him.
Otavio seems to have made up his mind about leaving Porto and has made the decision to try out a new adventure in the summer.
It remains to be seen whether Porto try to convince him again or resign themselves to the fact that he will leave on a free transfer.
With the midfielder unlikely to sign a new deal, his representatives will try to find a new club and he could sign a pre-contract with one of his suitors.