The 20-year-old playmaker is keen to stay, and the club have been desperate to hang onto him, but he is now on the verge of leaving.
Sao Paulo are in serious financial strife and now admit that Kaka may be sold to bring in the revenue they are desperate for.
"We did not want to sell, but we are getting to the point where we will have to, even for less than the $20 million we want," said Sao Paulo manager Carlos Augusto de Barros.
The crucial matter for the decision of the directors is that some of their players have not received their wages for the past two months, and it seems the only way out would be to cash in on Kaka.
The player himself says that he loves the club but knows that he may be sacrificed to ease their money problems, and would love to move to Europe.
"Everyone knows of my desire to play in Europe and of the situation of Sao Paulo and Brazilian football," said Kaka.
"But I want to leave with my head held high and to leave my name marked in the memory of the fans."
According to Kaka's representative Wagner Ribeiro, two sides from Europe have shown interest in him up to now, Bayer Leverkusen and Brescia.
"It has been spoken about Milan and Salamanca in the last few days, but at the moment we have not had direct contacts with them," said Ribeiro.
"The only two sides that have moved for Kaka have been Brescia and Bayer Leverkusen."
Juventus and Manchester United have also been linked with Kaka but Sao Paulo may well have to offload him as soon as possible in order to bring in some much-needed cash.
