The 23-year-old has been playing for Bayern Munich since 2008, including a one-year spell on loan at FC Nuremberg, after a transfer from the Brazilian club rumoured to be up to 12 million euros.
He was sentenced to three years and nine months behind bars for setting fire to his Munich home while under the influence of alcohol in October 2011.
Despite being only six months into his sentence, Sao Paulo announced they have had signed Breno until October 7, 2015, stating that they wanted to give him “security, stability and most of all a perspective”.
The defender was diagnosed with depression by a psychiatrist during his trial, and German media reports he has been steadily improving since.
The contract will be valid upon Breno’s release from prison.