Ferraresi came to Manchester City last summer but was immediately sent on loan to Portuguese side Estoril for the season to continue his development.
For Estoril, the centre-back started 23 games in the league and then he returned to Manchester City, but he is now set to depart again.
Brazilian giants Sao Paulo want to take the centre-back on loan this summer and they have now got their wish.
Manchester City have agreed to send the Venezuelan star to Sao Paulo on loan, according to Portuguese journalist Pedro Sepulveda.
The loan agreement will also entail an option to buy for an amount of €6m, for 60 per cent of his rights, which the Brazilian club can exercise at the end of his spell.
Sao Paulo are currently 11th in the Brazilian Serie A and have not won their last six matches, in fact winning only twice since June, and they will be hoping that Ferraresi helps them turn around their form.
If Sao Paulo do take up the purchase option in his deal, Ferraresi will have departed Manchester City having not made a single appearance for them.