Guangzhou are managed by former Brazil manager Luis Felipe Scolari and he is keen to bring his compatriot to the club.
Spurs are hoping to agree a deal that will see them recoup most, if not all, of the ??17m they paid Corinthians for the midfielder in 2013.
Paulinho, who was left out of the Brazil squad for the ongoing Copa America, has been quoted in the South American media as saying he has had a number of offers to leave White Hart Lane via his agent.
Expectations were high when he arrived but the 26-year-old has had a somewhat disappointing two-year spell at Spurs. He was one of seven much-talked-about names who were signed by technical director Franco Baldini while Andre Villas-Boas was head coach.
He has made 67 Tottenham appearances, scoring 10 goals, but is one of a number of players Spurs are open to selling.