Greece captain Theodoros Zagorakis is holding talks with Spanish side Levante, the promoted Primera Liga club said on Thursday.
Zagorakis, named player of the tournament at Euro 2004 after leading his country to a shock victory over Portugal in the final, was released by debt-laden AEK Athens on Wednesday.
"The negotiations are at an advanced stage and they will continue on Thursday," Levante said on their web site.
The 32-year-old former Leicester City midfielder has also been linked with a move to Italian club Bologna.
Levante, comfortable winners of the second division title, have recruited Ireland left back Ian Harte from Leeds United and Sweden defender Johan Mjallby from Celtic as they prepare for their first season in the Primera Liga for 39 years.
