Former Brazil and Real Madrid coach Vanderlei Luxemburgo has denied reports linking him with a return to Palmeiras.

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The 60-year-old has this year led Gremio to second in Brazil's top-flight with two matches remaining after the club finished 12th last season, reports Xinhua.

With his contract due to expire in December, Luxemburgo is yet to commit to a new deal with the Porto Alegre outfit.

"I haven't received any proposals from Palmeiras however I don't say no to anything. The reality and the truth is that I am renegotiating my contract renewal at Gremio."

Luxemburgo has coached Palmeiras on four previous occasions and led the club to consecutive championship triumphs in 1993 and 1994.