Lula expected to be named cabinet position

Brazilian President Dilma Rousseff would offer her predecessor Luiz Inacio Lula da Silva a cabinet position, local media reported Tuesday.

Rousseff would offer Lula a cabinet position and the latter was on his way to the capital Brasilia, the newspaper O Globo reported, without specifying the position.

Later on the day, the Valor Economic Daily said "99.9 percent certain" that Lula would be named interior minister, quoting sources inside the president's office.

The reports led to the announcement by Rousseff's office in a statement that Lula's appointment would be made on Wednesday.

Sao Paulo state prosecutors requested the arrest of Lula last week after charging him with money laundering in relation to a graft probe against state-run oil giant Petrobras. Federal Judge Sergio Moro, who oversees the probe, has yet to approve or reject the request.

Accepting a cabinet position would give Lula immunity from the court Moro is with, though not from the Supreme Court.

Market analysts said having Lula in the cabinet may help Rousseff through economic difficulties in the short term. Lula is known as an advocate of stimulus measures and the use of international reserves.

Brazilian media also speculated that Lula's enduring popularity could also help Rousseff better stave off impeachment efforts against her. Endi