The 24-year-old spent last season on loan in the Championship.
The Mail reports that the Portuguese - who has previously been on loan at Swansea City and Nottingham Forest - is one of several names the Blues are considering as they look to bolster their attacking options ahead of the new season.
Oliveira is available on loan once again, the Mail claims, but is also attracting the attention of Sheffield Wednesday.
With Gary Rowett's men lacking depth up front, Oliveira would arguably be an excellent addition as they attempt to improve on the promise they showed last season, where they remained in the play-off hunt right until the final weeks of the campaign.
And although the Owls came closer to promotion, their strength in attack may actually tempt Oliveira towards St Andrew's as a move to the Midlands club would arguably see him earn more game-time than if he joined Wednesday.
Though the 24-year-old has hardly been prolific at any stage of his career, his spell at the City Ground last term showed that he is more than capable of contributing in the second tier as he bagged nine goals.
And with several caps for his national team under his belt, it is clear that he could be the kind of addition that helps Rowett's side take that next step and make an even better challenge for a place in the top six.