Everton manager David Moyes was impressed by Jo's half-season loan spell at Goodison Park last term, and is keen on renewing terms with Manchester City in order to secure the Brazilian's services for a further year.
Chief Executive Robert Elstone confirmed that negotiations had already begun, and told the club's official website, "We have had a conversation with Manchester City over the options available to us and discussions are set to continue."
Jo, who scored five times for the Toffees last season, is currently on pre-season training in Scotland with Everton.
The player former City manager Sven Goran Eriksson courted could be deemed surplus to requirements at Eastlands, following the arrivals of Craig Bellamy, Robinho, and Roque Santa Cruz.
The following players have been included in the squad for the Toffees' tour of Scotland: Carlo Nash, John Ruddy, Iain Turner, Tony Hibbert, Leighton Baines, Phil Neville, Leon Osman, Marouane Fellaini, Louis Saha, Dan Gosling, Lukas Jutkiewicz, James Vaughan, Jose Baxter, James Wallace, Hope Akpan, Seamus Coleman, Shkodran Mustafi, Kieran Agard, and Shane Duffy
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