Melo hasn't made a single appearance for Sheffield Wednesday over the past two campaigns.
Melo has not played for the Owls since the final day of the 2014-15 season after multiple injury lay-offs.
Filipe Melo in one of only six appearances for Sheffield Wednesday
The 27-year-old is now back fit, however, but finds his path to Carlos Carvalhal's first team blocked by Sam Hutchinson and David Jones.
According to O Jogo, the solution is to send Melo out on loan for the remainder of the current campaign, with Paços de Ferreira, Belenenses and former club Moreirense all listed as suitors.
Melo - who is under contract at Hillsborough until 2018 - is the second Wednesday player to be linked with a return to his native Portugal this week, with winger Marco Matias - who arrived in South Yorkshire six months after Melo, from Nacional da Madeira - a target for Chaves, according to A Bola.
Sheffield Wednesday's Marco Matias is also yet to feature this season
Speaking about the alleged Matias interest on Thursday, however, Carvalhal insisted he has never spoken to the player regarding such a move.
"I never talk with Marco about that, never," said the 51-year-old, at a press conference broadcast via the Owls' official Facebook account.
"If the clubs are interested in him, it’s normal. It’s normal that teams are interested in him like some [of] our players. This is normal in football but so far I never talk with Marco about the situation."
Will we ever see Melo again in a Sheffield Wednesday shirt?